A Firm Is Said to Be Using Costly Trade Credit

question 86

True/False

A firm is said to be using costly trade credit when its accounts payable are extended beyond the discount period and an explicit cost is shown on the forgone discounts.

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Definitions:

Online Marketplace

A platform available on the internet where buyers and sellers can transact for goods or services; it can be operated by a third party or directly by the seller of the product or service.

Personal Assistant App

A software application designed to help users with tasks such as scheduling appointments, sending reminders, making phone calls, and answering questions using natural language processing.

Wake Word

A specific word or phrase programmed into a voice-activated device to initiate listening or processing of subsequent commands.

Video Conferencing Application

A software tool that enables users to conduct real-time video calls and meetings over the internet.