It Is Necessary for a Company to Maintain Good Control

question 37

Multiple Choice

It is necessary for a company to maintain good control over their accounts payable and paying by the due date, for all of the following reasons, except:

• A)Avoid late payment fees
• B)Maintain relationships with customers
• C)To take advantage of discounts for early payment
• D)To stay on good terms with its vendors

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Definitions:

Open-End Credit Line

A flexible loan facility that allows borrowers to draw down, repay, and redraw loans up to a specified credit limit.

Finance Charge

The total cost of borrowing, including interest and any other charges assessed by the creditor on a loan or credit.

Unpaid Balances

Amounts owed that have not yet been paid, typically referring to outstanding debts or bills.

Unsolicited Merchandise

Goods sent to a person without their request, where the recipient is typically under no obligation to pay for or return the items.