Your Firm Purchases Goods from Its Supplier with a Discount

question 70

Multiple Choice

Your firm purchases goods from its supplier with a discount of 2%,and a discount period of 10 days.If the effective annual cost of forgoing the discount is 44.59%,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:

Digital Natives

Individuals born into the era of digital technology who are familiar and comfortable with computers and the Internet from an early age.

Nonverbal Cues

Communication signals given through body language, gestures, facial expressions, and tone of voice, rather than words.

Ten Commandments

A set of biblical principles relating to ethics and worship, playing a fundamental role in Christianity and Judaism.

Listening

The active process of receiving, interpreting, and responding to verbal and nonverbal messages.