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.

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Definitions:

Cognitive Theory

A theory in psychology that emphasizes the importance of internal mental processes in understanding behavior.

Critical Thinking

The ability to analyze information objectively and make a reasoned judgment, involving logical reasoning and questioning assumptions.

Biology

The science of life and living organisms, including their structure, function, growth, evolution, and distribution.

Acquired

Refers to something obtained or gained through one's actions or experiences.