Upstate Farms Factors Its Accounts Receivable Immediately at a Discount

question 16

Multiple Choice

Upstate Farms factors its accounts receivable immediately at a discount of 2.5 percent.The average collection period is 39 days.Assume all accounts are collected in full.What is the effective annual interest rate on this arrangement? Assume a 365-day year.

• A)29.97%
• B)26.74 %
• C)30.78%
• D)27.90%
• E)28.33%

Understand the legal implications of fixtures and their relationship to property law.

Analyze and apply legal principles governing documents of title and their role in the bailment process.

Recognize the legal outcomes from key cases that have helped shape property and bailment law.

Grasp the importance of due diligence and the impact of negligence in the context of property law.

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Definitions:

Electronic Health Records Software

Electronic Health Records Software is digital platforms that healthcare providers use to manage and store patients’ health information securely and efficiently.

Assets

Resources owned by an individual or organization, having economic value and expected to provide future benefits.

Double-Entry Bookkeeping System

An accounting method that records each financial transaction twice, in debit and credit columns, to maintain the balance of the accounting equation.

Single-Entry System

A simple form of bookkeeping where each financial transaction is recorded in only one account, not suitable for tracking assets and liabilities accurately.