Your Firm Buys on Credit Terms of 2/10,net 45,and It

question 77

Multiple Choice

Your firm buys on credit terms of 2/10,net 45,and it always pays on day 45.If you calculate that this policy effectively costs your firm $157,500 each year,what is the firm's average accounts payable balance?

• A) $1,234,000
• B) $75,000
• C) $157,500
• D) $625,000
• E) $750,000

Understand demographic disparities in unemployment and labor-force participation rates within the U.S. population.

Identify trends in labor-force participation rates over several decades in the United States.

Recognize the causes of changes in the role of women in the American labor force.

Comprehend the concept of natural and cyclical unemployment.

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Definitions:

Future Payments

The amounts of money obligated to be paid at future dates for goods or services received or for debt repayment.

Withholding Table

A chart that helps employers determine the amount of taxes to withhold from employees' paychecks, based on their earnings and tax status.

Credit Purchases

Transactions in which goods or services are bought now but payment is deferred to a later date.

Suppliers

Entities that provide goods or services to another company, often playing a critical role in the production process or supply chain.