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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Definitions:

ATP

Adenosine triphosphate, a nucleotide that serves as the primary energy carrier in cells, providing energy for many biochemical cellular processes by undergoing enzymatic hydrolysis.

Chemical Energy

The potential of a chemical substance to undergo a transformation through a chemical reaction or to transform other chemical substances.

Mechanical Energy

The sum of potential and kinetic energy in physical systems, often involved in performing work or causing motion.

Kinetic Energy

The energy that an object possesses due to its motion, which is dependent on the mass of the object and the square of its velocity.