Which of the Following Statements About Accounts Payable Is Not

question 19

Multiple Choice

Which of the following statements about accounts payable is not true?

• A)They are usually due within 30 to 60 days.
• B)They normally carry implicit interest charges.
• C)There may be a penalty for late payment.
• D)They are typically used to finance inventory purchases.

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Definitions:

Business Undertaking

A venture or project that is undertaken by a business or organization, often involving considerable risk.

Joint Control Agreement

An agreement between two or more parties to share control over strategic financial and operating decisions of a venture.

Profit

The financial surplus remaining after subtracting total expenses from total revenue.

Joint Control

A situation in which two or more parties have agreed to share control over an economic activity or entity.