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Owen Was Surprised When He Calculated the Percentage Annual Interest

Question 73

Multiple Choice

Owen was surprised when he calculated the percentage annual interest rate on his accounts payable.He discovered that failure to take advantage of the discount offered by suppliers


A) makes small difference since a business does not pay a high interest rate.
B) makes a large difference since a business pays a high interest rate.
C) has no effect on cash flow since the interest rates are so low.
D) will have erratic effects on rates for the use of a supplier's money.

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