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.