If a Firm Anticipates Stretching Accounts Payable, Its Cost of Giving

question 96

True/False

If a firm anticipates stretching accounts payable, its cost of giving up a cash discount is reduced.

---

Definitions:

Contraction

The process of becoming smaller or shorter, often in reference to the cooling and solidifying of the Earth's crust which can lead to tectonic activities.

Differential Stress

Stress applied unevenly in different directions, leading to deformation of Earth's crust.

Confining Pressure

A type of pressure applied equally in all directions on a body of rock, often affecting its physical state.

Tension

the force that pulls geological materials apart, often causing stretching and thinning.