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:

Percentage

A proportion or share expressed as a fraction of 100.

Inferential Statistics

The branch of statistics that allows making predictions or inferences about a population based on a sample of data drawn from that population.

Descriptive Statistics

Statistical methods that summarize and describe the features of a dataset.

Descriptive Measure

Statistical calculations that summarize or describe the characteristics of a set of data, including measures such as mean, median, and mode.