When Managing Accounts Payable, a Good Strategy Would Be to ________

question 206

Multiple Choice

When managing accounts payable, a good strategy would be to ________.

• A) pay as early as possible creating better credit rating for a firm
• B) pay as slowly as possible without damaging a firm's credit rating
• C) pay big customers early to maintain good relations and small customers on a later date
• D) pay only when a firm has adequate funds to meet its liabilities

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Definitions:

Ethics of Exchange

The moral principles that guide conduct and decisions in situations involving trading and transactions between parties.

Buyers and Sellers

Parties involved in the exchange of goods, services, or financial instruments in a marketplace.

Caveat Emptor

A legal principle that means "let the buyer beware," implying that it is the buyer's responsibility to perform due diligence before making a purchase.

Pre-owned Car

A vehicle that has been previously owned by one or more retail owners, typically sold through various outlets including dealerships and private sales.