Which of the Following Statements Is FALSE

question 32

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.

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Definitions:

Allergic Reaction

An immune response to a substance, known as an allergen, that is typically harmless to most people.

Osmosis

The movement of water molecules through a semipermeable membrane from a region of lower solute concentration to one of higher concentration.

Charged Molecules

Molecules that have an electric charge due to the loss or gain of one or more electrons.

Lipid Molecules

Organic molecules that are fatty acids or derivatives, insoluble in water but soluble in organic solvents, playing key roles in energy storage, structure, and signaling.