Tangshan Mining Was Extended Credit Terms of 3/15 Net 30

question 44

Multiple Choice

Tangshan Mining was extended credit terms of 3/15 net 30 EOM. The cost of giving up the cash discount, assuming payment would be made on the last day of the credit period, would be ________. If the firm were able to stretch its accounts payable to 60 days without damaging its credit rating, the cost of giving up the cash discount would only be ________.

• A) 72.99%; 18.81%
• B) 72.99%; 18.25%
• C) 75.25%; 21.90%
• D) 75.26%; 25.09%

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Definitions:

Preventative Solutions

Strategies or measures adopted in advance to reduce the risk of problems or issues arising in the future.

Workplace Stress

The physical and emotional strain experienced by employees due to various factors in the workplace, such as workload, deadlines, and interpersonal conflicts.

Ergonomics

The study of relationships between physical attributes of workers and their work environment to reduce physical and mental strain and increase productivity and quality of work life.

Behavioural Characteristics

Traits or patterns in an individual's actions or reactions that help to define how they behave in various situations.