Which of the Following Statements Incorrectly Describes the Accounts Payable

question 31

Multiple Choice

Which of the following statements incorrectly describes the accounts payable turnover ratio?

• A)A high ratio indicates that suppliers are being paid in a timely manner.
• B)The ratio increases when inventory is sold on account regardless of the sales price.
• C)The ratio can be manipulated by aggressively paying off accounts payable at year-end.
• D)The ratio is not affected by the choice of inventory accounting methods.

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Definitions:

Ego State

Represents the different parts of our personality that become activated in response to different situations, based on transactional analysis theory.

Chronic Conflict

Long-standing disagreements or battles between groups or individuals that are resistant to resolution.

Adaptive

Adaptive refers to the ability or quality of adjusting to new conditions or environment, often used in psychology to describe behaviors or strategies that are beneficial for coping with stress or change.

Transactional Analysis

A psychological theory and therapy focusing on the interactions or 'transactions' between individuals and the psychological processes behind them.