Which of the Following Statements Is FALSE

question 19

Multiple Choice

Which of the following statements is FALSE?

• A)Suppliers may react to a firm whose payments are always late by imposing terms of cash on delivery (COD)or cash before delivery (CBD).
• B)Some firms ignore the payment due period and pay later, in a practice referred to as 'pushing the accounts payable'.
• C)Similar to the situation with its accounts receivable, a firm should monitor its accounts payable to ensure that it is making its payments at an optimal time.
• D)If the accounts payable outstanding is 40 days and the terms are 2/10 net 30, the firm can conclude that it generally pays late and may be risking supplier difficulties.

---

Definitions:

Problem Solving

The process of identifying a problem, developing possible solution paths, and taking the appropriate course of action to resolve the problem.

Sharing

The act of using, occupying, or enjoying something jointly with others.

Negotiations

The process by which two or more parties discuss an issue to reach a mutually acceptable agreement.

Lowest Costs

Refers to achieving the minimal financial expenditure in the procurement of goods, production, or operation services.