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

question 102

Multiple Choice

A firm decides to stretch its accounts payable,resulting in an effective annual cost of credit of 20.24%,under terms of 2/10 net 20.When is the firm paying its accounts payable?

• A)40 days
• B)45 days
• C)50 days
• D)54 days
• E)55 days

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Definitions:

Adult

A person who has reached the age of majority as legally defined, typically characterized by physical growth completion, sexual maturity, and legal responsibility for their actions.

Hypernatremia

A medical condition characterized by an abnormally high concentration of sodium in the blood.

Serum Sodium

The concentration of sodium ions present in the serum component of blood, important for maintaining fluid balance and nerve and muscle function.

Diastolic Blood Pressure

The pressure in the arteries when the heart rests between beats, indicating the minimum blood pressure.