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B Corp.has a debt/equity ratio of 2 to 1.Not including any indirect effects on earnings,the debt/equity ratio is increased when B records:
Discount Period
The time frame between the date a bill is issued and its payment date, within which payment may be made at a discount.
Credit Report
A detailed breakdown of an individual's credit history prepared by a credit bureau, used by lenders to determine creditworthiness.
Optimal Amount of Credit
The ideal volume of borrowing that maximizes a firm's value or an individual's financial well-being, considering the cost of borrowing.
Opportunity Costs
Opportunity costs represent the benefits an individual, investor, or business misses out on when choosing one alternative over another.
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