If a Company Can Stretch Its Accounts Payable Without Damaging

question 56

Multiple Choice

If a company can stretch its accounts payable without damaging its credit rating, it is effectively ___________ the cost of foregoing the cash discount.

• A) increasing
• B) reducing
• C) not affecting
• D) not able to determine.

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Definitions:

Stringency

refers to the strictness, exactness, or severity in the application of rules or standards.

Punishment

A form of social control involving the application of an unpleasant stimulus or penalty in response to undesired behavior, aiming to decrease that behavior.

Degrees

Degrees are academic qualifications awarded by colleges or universities, representing a level of education or expertise achieved in a specified field of study.

Varieties

Different types, categories, or forms of a specific thing, emphasizing diversity within a group or category.