What Is the Effective Cost of Credit Terms of 2/10,net

question 65

Multiple Choice

What is the effective cost of credit terms of 2/10,net 30 if the firm stretches the accounts payable to 45 days?

• A)49.76%
• B)36.12%
• C)23.37%
• D)44.59%

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Definitions:

Germ Layer

Each of the three layers of cells (ectoderm, mesoderm, and endoderm) that form during embryogenesis, which give rise to all tissues and organs of an organism.

Radial Cleavage

A type of embryonic development in which the cells divide parallel or perpendicular to the polar axis, resulting in a radially symmetrical embryo.

Echinoderms

A phylum of marine animals characterized by radial symmetry and a unique water vascular system, including starfish and sea urchins.

Amphibians

Cold-blooded vertebrates that can live both in water and on land, such as frogs, toads, salamanders, and newts.