Your Firm Purchases Goods from Its Supplier with a Discount

question 1

Multiple Choice

Your firm purchases goods from its supplier with a discount of 1%,and a discount period of 15 days.If the effective annual cost of forgoing the discount is 15.8%,what is the length of the credit period?

• A)10 days
• B)20 days
• C)30 days
• D)40 days
• E)50 days

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Definitions:

Privilege to Detain

A legal right or authorization given to certain authorities to arrest or hold individuals under specific circumstances.

Harmful Contact

Physical interaction that results in injury or damage to another person, considered to be a form of assault.

Intent to Confine

The deliberate intention to restrict an individual's freedom of movement unlawfully.

Actual Confinement

The physical detention of a person in a prison or similar facility following a legal conviction.