When a Firm Stretches Accounts Payable Without Hurting Its Credit

question 126

Multiple Choice

When a firm stretches accounts payable without hurting its credit rating, the cost of foregoing thecash discount is

• A) immaterial.
• B) reduced.
• C) increased.
• D) unaffected.

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Definitions:

Teratogenicity

The capability of a substance to cause birth defects by negatively affecting the development of a fetus when the mother is exposed to that substance during pregnancy.

Electrical Power Lines

Conduits for the transmission and distribution of electricity from power plants to consumers over long distances.

Gestational Diabetes

A form of diabetes that develops during pregnancy, characterized by high blood sugar levels that can affect both mother and baby.

Anovulation

The absence of ovulation, which can lead to infertility and irregular menstrual cycles.