Which of the Following Statements Is Correct

question 11

Multiple Choice

Which of the following statements is correct?

• A) A low average payment period and a high accounts payable turnover are a sign of good management.
• B) A high average payment period and a low accounts payable turnover are a sign of good management.
• C) A high average payment period and a high accounts payable turnover are a sign of good management.
• D) A low average payment period and a low accounts payable turnover are a sign of good management.

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Definitions:

Lost Property

Items that are unintentionally left by their owner at a specific location, which can then be found by others.

Bailment

A legal relationship where physical possession of personal property, or a chattel, is transferred from one party to another, with the understanding that the property will be returned or otherwise disposed of according to the owner's instructions.

Bailor

A person or entity that entrusts their property into the hands of another, called the bailee, under an agreement for a specific purpose.

Bailee

An individual or entity that is given temporary possession, but not ownership, of personal property by another person (the bailor) under a bailment agreement.