Which of the Following Statements Incorrectly Describes the Accounts Payable

question 72

Multiple Choice

Which of the following statements incorrectly describes the accounts payable turnover ratio?

• A)A high ratio indicates that suppliers are being paid in a timely manner.
• B)It increases when inventory is sold on account regardless of the sales price.
• C)It can be manipulated by aggressively paying off accounts payable at year-end.
• D)It is not affected by the choice of inventory accounting methods.

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Definitions:

Visual Sensitivity

The ability of the visual system to detect and respond to small differences or changes in the visual environment.

Opponent-Process Theory

The theory that opposing retinal processes (red-green, blue-yellow, white-black) enable color vision. For example, some cells are stimulated by green and inhibited by red; others are stimulated by red and inhibited by green.

Ewald Hering

A 19th-century physiologist known for his work on color vision and spatial perception.

Young-Helmholtz Theory

A theory of color vision proposing that the eye contains three types of color receptors, each sensitive to red, green, or blue wavelengths of light.