When a Firm Stretches Accounts Payable Without Hurting Its Credit

question 119

Multiple Choice

When a firm stretches accounts payable without hurting its credit rating, the cost of foregoing the cash discount is

• A) reduced.
• B) increased.
• C) unaffected.
• D) immaterial.

---

Definitions:

Caucasian

Refers to people of European, North African, or Southwest Asian ancestry.

African Americans

A racial or ethnic group in the United States with ancestry from any of the black populations of Africa.

Socioeconomic Status

A measure of an individual's or family's economic and social position relative to others, based on income, education, and occupation.

African Ancestry

refers to the lineage or heritage of an individual or community tracing back to the African continent.