Managers Who "Stretch Their Payables" Are Attempting To

question 118

Multiple Choice

Managers who "stretch their payables" are attempting to:

• A) repay more recent charges prior to early charges.
• B) improve their current ratio prior to preparing financial statements.
• C) offer finished goods at a discount for quicker repayment.
• D)obtain a longer term for short-term financing.

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Definitions:

Paralegal Seeking Employment

Refers to a legally trained individual who performs tasks requiring knowledge of the law and legal procedures, in the process of looking for a job.

Adverse Selection

Form of market failure resulting when products of different qualities are sold at a single price because of asymmetric information, so that too much of the low-quality product and too little of the high-quality product are sold.

High Blood Sugar

A condition characterized by an excessively high level of glucose in the blood, commonly associated with diabetes.

Excess Drinking

The consumption of alcohol beyond what is considered moderate or socially acceptable, often leading to adverse health and social effects.