Question
TrainWorld buys on terms of 2.5/15, net 40. It does not take the discount and it generally pays after 40 days. What is the nominal
TrainWorld buys on terms of 2.5/15, net 40. It does not take the discount and it generally pays after 40 days. What is the nominal annual percentage cost of its non-free trade credit, based on a 365-day year?
Answer choices:
29.62%
35.34%
31.15%
37.38%
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Auditing Cases An Active Learning Approach
Authors: Mark S. Beasley, Frank A. Buckless, Steven M. Glover, Douglas F. Prawitt
2nd Edition
9781266566899
