Which of the Following Statements Is Not Correct Regarding Accounts

question 83

Multiple Choice

Which of the following statements is not correct regarding accounts payable management and average payment period (APP) ?

• A) A firm wants to pay for its purchases as slowly as possible.
• B) The faster the firm pays for its supply purchases, the longer it can avoid financing such as notes payable or long-term debt.
• C) A high APP is generally a sign of good management.
• D) An extremely high APP could be a sign of bad firm management.

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