Which One of the Following Changes to the Terms of Credit

question 84

Multiple Choice

Which one of the following changes to the terms of credit would increase the effective annual rate?

• A) Increasing the cash discount percentage
• B) Extending the discount period and payment period by 10 days each
• C) Extending the payment period only
• D)Decreasing the discount period only

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Definitions:

Active Listening

The process of fully concentrating, understanding, responding, and remembering what is being said during communication.

True Meaning

The genuine significance or deepest understanding of a concept, situation, or message.

Concentrating

Focusing attention or mental effort on a specific object, task, or activity.

Electronic Communication

The transfer of information using electronic mediums such as email, social media, and online messaging platforms.