If One of Your Firm's Customers Is "Stretching" Its Accounts

question 44

True/False

If one of your firm's customers is "stretching" its accounts payable, this may be a nuisance but it does not represent a real financial cost to your firm as long as the customer periodically pays off its entire balance.

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Definitions:

SEC Approval

Official authorization or endorsement by the Securities and Exchange Commission, often required for securities transactions or registrations.

Corporation Commission

A regulatory body that oversees corporations, ensuring compliance with laws and regulations related to incorporation, securities, and other business activities.

Shareholders

Individuals or entities that own one or more shares of stock in a corporation, making them part owners of the company.

Board of Director's Approval

Formal sanction or consent given by a company's board for specific actions or decisions.