A Firm Decides to Stretch Its Accounts Payable,resulting in an Effective

question 119

Multiple Choice

A firm decides to stretch its accounts payable,resulting in an effective annual cost of credit of 22.4%,under terms of 3/15 net 30.When is the firm paying its accounts payable?

• A)70 days
• B)65 days
• C)60 days
• D)55 days
• E)50 days

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Definitions:

Sanctuary Cities

Municipalities that adopt policies to limit cooperation with the national government's effort to enforce immigration law.

Immigration Law

The body of law governing immigration and deportation, including the conditions for entering and remaining in a country.

Unfunded Mandate

A requirement or obligation imposed by the federal government on state or local governments without providing the necessary funds for compliance.

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Wheelchair lifts are mechanical platforms designed to elevate a wheelchair and its occupant in order to overcome steps or vertical barriers.