If a Company Can Stretch Its Accounts Payable Without Damaging

question 86

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)translating
• C)not affecting
• D)not able to determine.
• E)none of the above

---

Definitions:

Supply Curve

A supply curve is a graph that shows the quantity of goods that producers are willing to sell at different prices, typically depicting a positive relationship between price and quantity supplied.

Demand Curve

A graphical representation of the relationship between the price of a good or service and the quantity demanded for a given period, typically downward sloping.

Price Elasticity

A measure of how much the quantity demanded of a good responds to a change in the price of that good, reflective of its sensitivity to price changes.

Price Elasticity

An indicator of consumer sensitivity to price fluctuations, represented by the extent to which demand for a product varies in response to its price adjustments.