When Managing Accounts Payable, a Good Strategy to Employ That

question 319

Multiple Choice

When managing accounts payable, a good strategy to employ that won't hurt your credit rating is to

• A) pay early.
• B) pay as late as possible.
• C) never pay.
• D) pay on the due date.

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Definitions:

Market Value

The current quoted price at which an asset or a company is bought or sold on the marketplace.

Book Value

The total worth of a corporation's assets after deducting its liabilities, as stated in the balance sheet.

Weighted-Average Cost

A calculation that takes into account the varying costs of items or resources, weighted by their relative importance or quantity.

Capital Structure

The mix of a company's long-term debt, specific short-term debt, common equity, and preferred equity, which constitutes how a firm finances its overall operations and growth.