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:

Decisions

The act of making choices or conclusions after considering different options and their potential outcomes.

Approach-Avoidance

A psychological conflict experienced when a single goal or event has both attractive and unattractive aspects.

Behavioural Vacillation

The tendency to switch back and forth between different behaviors or opinions, reflecting inconsistency in decision-making or actions.

Conflict

A serious disagreement or argument, typically a protracted one, which can occur between individuals, groups, or nations.