Which of the Following Statements Is Not Correct Regarding Accounts

question 83

Multiple Choice

Which of the following statements is not correct regarding accounts payable management and average payment period (APP) ?

• A) A firm wants to pay for its purchases as slowly as possible.
• B) The faster the firm pays for its supply purchases, the longer it can avoid financing such as notes payable or long-term debt.
• C) A high APP is generally a sign of good management.
• D) An extremely high APP could be a sign of bad firm management.

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Definitions:

Honest Signals

Communicative actions or displays that convey accurate information about an organism's capabilities, intentions, or genetic quality to others.

Redundant Signals

Multiple signals or messages that convey the same information, potentially increasing the reliability of communication.

Begging Frequencies

The rate at which offspring, particularly in birds, vocalize or display behaviors to request food from their parents.

Ground-nesting Warblers

Birds that belong to the warbler group and build their nests on the ground rather than in trees, adapting certain behaviors to protect their eggs and young from predators.