A Firm Decides to Stretch Its Accounts Payable,resulting in an Effective

question 119

Multiple Choice

A firm decides to stretch its accounts payable,resulting in an effective annual cost of credit of 22.4%,under terms of 3/15 net 30.When is the firm paying its accounts payable?

• A)70 days
• B)65 days
• C)60 days
• D)55 days
• E)50 days

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Definitions:

Registered Students

Individuals who have completed the enrollment process to attend courses or programs at an educational institution.

Forging Process

A manufacturing process involving the shaping of metal using localized compressive forces.

Inside Diameter

The measurement of the interior width of a hollow object from one inner wall directly across to the opposite inner wall.

Capability Index

A statistical measure of a process's ability to produce output within preset specification limits.