When a Firm Stretches Accounts Payable Without Hurting Its Credit

question 166

Multiple Choice

When a firm stretches accounts payable without hurting its credit rating, the cost of giving up a cash discount is ________.

• A) reduced
• B) increased
• C) unaffected
• D) increased or decreased depending on the opening accounts payable balance

---

Definitions:

School District

A geographical unit for the local administration of elementary or secondary schools.

Researcher Reactivity

The phenomenon where the presence or behavior of the researcher influences the subjects' behavior or the outcome of the study.

Unobtrusive Measures

Research methods that do not interfere with the subjects being studied, allowing researchers to observe behavior or phenomena in a natural, undisturbed manner.

Researcher Bias

The tendency of a researcher to allow personal beliefs, preferences, or assumptions to influence the outcome of a study.