Which Statement Concerning the Average Settlement Period for Accounts Payable

question 18

Multiple Choice

Which statement concerning the average settlement period for accounts payable is correct?

• A)It is always best for the business to make creditors wait for their money for as long as possible.
• B)It is best to pay accounts payable as quickly as possible.
• C)Accounts payable provide a free source of finance for a business.
• D)A change in the accounts payable turnover period of 56 days to 65 days means that accounts payable are being paid faster.

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Definitions:

Mylohyoid

A muscle in the floor of the mouth that elevates the hyoid bone and the floor of the mouth during swallowing and speaking.

Serratus Ventralis

A muscle group found in the thorax that plays a crucial role in the movement of the scapula.

Redundancies

Situations or elements that are unnecessary or duplicative, often leading to inefficiency.

Excessive Enthusiasm

A state of being overly eager or excited, which can sometimes overwhelm others or detract from the intended message.