Which of the Following Is a Symptom of Accounts Payable

question 38

Multiple Choice

Which of the following is a symptom of Accounts Payable fraud?

• A) Discrepancies in cut-off tests
• B) Discussion of Contingent liabilities in Board Minutes
• C) Liens on properties that are supposed to be paid for
• D) None of the above

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Definitions:

Cash Cycle

The period between the outlay of cash for raw materials and receiving payment from customers for goods or services, reflecting the efficiency of a company's cash management.

Paying Suppliers

The process of settling financial transactions with suppliers by transferring payment for goods or services received.

Inventory Period

The duration of time it takes for a company to sell its inventory and convert it into sales, often measured in days or months.

Slow-selling Merchandise

Items in inventory that move or sell at a slower pace than anticipated, often leading to excess stock and markdowns.