Which of the Following Statements Is NOT True of an Accounts

question 47

Multiple Choice

Which of the following statements is NOT true of an accounts payable system?

• A) It provides an overview of money due in different categories.
• B) It controls the outflow of money for expenses.
• C) It is used to manage payments for recurring expenses.
• D) It can print checks or authorize EFTs to pay bills.
• E) It can manage the disbursement of payments for purchases the facility has authorized.

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Definitions:

Value

The economic, physical, or appraised valuation of a resource, merchandise, or assistance.

Term Loans

Loans from financial institutions that have a set repayment schedule and a fixed or floating interest rate.

Lockup Agreement

A contractual provision preventing insiders of a company from selling their shares for a certain period of time following an initial public offering (IPO).

Secondary Equity Offerings

Public sale of previously issued stock held by large investors or company insiders, often to raise additional capital.