Which of the Following Statements Is FALSE

question 32

Multiple Choice

Which of the following statements is FALSE?

• A)Similar to the situation with its accounts receivable,a firm should monitor its accounts payable to ensure that it is making its payments at an optimal time.
• B)Some firms ignore the payment due period and pay later,in a practice referred to as pushing the accounts payable.
• C)Suppliers may react to a firm whose payments are always late by imposing terms of cash on delivery (COD)or cash before delivery (CBD).
• D)If the accounts payable outstanding is 40 days and the terms are 2/10,net 30,the firm can conclude that it generally pays late and may be risking supplier difficulties.

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Definitions:

National Income

Net domestic product minus indirect business taxes.

Property Owners

Individuals or entities that hold legal title to land, buildings, or other types of real estate.

Poverty Line

The lowest amount of money required to maintain a satisfactory quality of life in a specific country.

Poverty Rate

The proportion of a population living under the poverty line, illustrating the percentage of people whose income falls below a specific threshold.