Which of the Following Statements Is False

question 19

Multiple Choice

Which of the following statements is false?

• A) Similar to the situation with its accounts receivable, a firm should monitor its accounts payable to ensure that it is making its payments at an optimal time.
• B) Some firms ignore the payment due period and pay later, in a practice referred to as pushing the accounts payable.
• C) Suppliers may react to a firm whose payments are always late by imposing terms of cash on delivery (COD) or cash before delivery (CBD).
• D) If the accounts payable outstanding is 40 days and the terms are 2/10, net 30, the firm can conclude that it generally pays late and may be risking supplier difficulties.