Which One of the Following Is the Most Ethical Practice

question 100

Multiple Choice

Which one of the following is the most ethical practice related to cash disbursement management?

• A)Intentionally delaying payments by creating a complex accounts payable system
• B)Taking the cash discount but paying after the discount period
• C)Paying a supplier from a zero-balance account
• D)Purposely losing a supplier's invoice and requiring the supplier to submit another copy
• E)Mailing a check from the most remote location possible

---

Definitions:

Transaction

The act of conducting a trade or business deal involving the exchange of goods, services, or financial assets.

Signaling

A concept in economics and finance where agents indirectly convey information about their qualities or intentions through their actions.

Liquidity

With respect to a company, the ability to pay its bills in the short run. With respect to an asset, the readiness with which it can be converted to cash.

Matching Savers

A concept in finance referring to the alignment of investors' preferences with appropriate investment opportunities.