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    Financial Management Theory and Practice Study Set 3
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    Exam 17: Working Capital Management and Short-Term Financing
  5. Question
    A Firm Is Said to Be Using Costly Trade Credit
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A Firm Is Said to Be Using Costly Trade Credit

Question 86

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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