Owen Was Surprised When He Calculated the Percentage Annual Interest

question 41

Multiple Choice

Owen was surprised when he calculated the percentage annual interest rate on his accounts payable.He discovered that failure to take advantage of the discount offered by suppliers

• A)makes small difference since a business does not pay a high interest rate.
• B)makes a large difference since a business pays a high interest rate.
• C)has no effect on cash flow since the interest rates are so low.
• D)will have erratic effects on rates for the use of a supplier's money.

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Definitions:

Extended Family

Expands the nuclear family “vertically” by adding another generation—one or more of the spouses’ parents—to the household.

Same Household

Refers to individuals who reside in the same dwelling, sharing living quarters and daily lives, often related by blood, marriage, or legal ties.

Grandparents

The parents of one's parents, who can play various roles in the family structure, from caregivers to sources of wisdom and tradition.

American Public

The population or societal group of the United States regarded collectively, especially in reference to societal, cultural, or political trends and attitudes.