Which One of the Following Statements Is Correct Concerning the Accounts

question 32

Multiple Choice

Which one of the following statements is correct concerning the accounts payable period?

• A)managers generally prefer a shorter accounts payable period than a longer one
• B)extending the accounts payable period effectively decreases the cash needs of a firm
• C)increasing the accounts payable turnover rate increases the accounts payable period
• D)an increase in the accounts payable period will increase the operating cycle,all else equal
• E)the accounts payable period is equal to the cost of goods sold divided by the average accounts payable

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Definitions:

McClelland's

A theory of motivation that highlights the importance of three primary needs: the need for achievement, the need for affiliation, and the need for power.

McClelland's

Refers to David McClelland's theory of needs, which identifies three primary motivational drivers: the need for achievement, the need for affiliation, and the need for power.

Short-Term Goals

Objectives set to be achieved in a brief period, guiding immediate actions and strategies.

Long-Term Goals

Objectives or targets that are planned to be achieved over an extended period, focusing on future aspirations and strategic outcomes.