Accounts Payable

question 28

Multiple Choice

Accounts payable:

• A)may be part of the supply department to ensure on-time payment to suppliers and to reduce transaction costs.
• B)should always be separate from purchasing as a good business practice.
• C)is legally prohibited from reporting to supply by federal regulations.
• D)cannot report to supply because of Generally Accepted Accounting Practices (GAAP)Rule #462.
• E)may legally report to supply,but it may convey the perception of conflict of interest to suppliers.