When a Firm's Accounts Payable Are Greater Than Its Accounts

question 54

True/False

When a firm's accounts payable are greater than its accounts receivable, the firm is receiving net trade credit.

---

Definitions:

Contract Rights

Contract rights refer to the entitlements and obligations that are legally binding between parties as stipulated in a contract.

Revocability

The ability to nullify, cancel, or repeal an agreement or contract.

Assignments

The transfer of rights or property from one party to another, often used in the context of contracts or legal agreements.

Promisor

A party in a contract who has agreed to perform a duty or obligation to another, known as the promisee.