Which One of the Following Changes to the Terms of Credit

question 94

Multiple Choice

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

• 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:

Stillbirth

The birth of a dead fetus.

Folic Acid

A B-vitamin essential for cell growth and development, often recommended during pregnancy to prevent birth defects.

Neural Tube Defects

Birth defects of the brain, spine, or spinal cord occurring in the early stages of pregnancy due to incomplete development of the neural tube.

Pregnant

The state of carrying a developing fetus within the female body, typically lasting around 40 weeks from the last menstrual period to childbirth.