What is the effective annual cost of credit terms of 1/10 net 30,if the firm stretches the accounts payable to 45 days?
A) 8.49 %
B) 10.91%
C) 11.05%
D) 18.03%
E) 9.64%
Correct Answer:
Verified
Q43: A firm should choose to borrow using
Q46: What are the five C's of Credit?
Q89: Your firm purchases goods from its supplier
Q90: A firm decides to stretch its accounts
Q91: A firm decides to stretch its accounts
Q93: Bercraft Industries has an average accounts payable
Q95: Ally Manufacturing has an average accounts payable
Q96: LeokLee Industries has an average accounts payable
Q97: What is the effective cost of credit
Q99: A firm has an average accounts payable
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents