Your Firm Buys on Credit Terms of 2/10,net 45,and It

question 77

Multiple Choice

Your firm buys on credit terms of 2/10,net 45,and it always pays on day 45.If you calculate that this policy effectively costs your firm $157,500 each year,what is the firm's average accounts payable balance?

• A) $1,234,000
• B) $75,000
• C) $157,500
• D) $625,000
• E) $750,000

---

Definitions:

Local Church

A community religious institution located within a specific geographic area, serving the spiritual and communal needs of its members.

Community Affiliation Model

A theoretical framework that emphasizes the importance of individuals' connections and relationships within their community.

Longitudinal Design

A research design that involves repeated observations of the same variables over short or long periods of time.

Cohort Design

A study design where a specific group of people (the cohort) is followed over time to observe outcomes within the group.