A Payables Manager Is Debating Which Guideline to Adopt for His

question 9

Multiple Choice

A payables manager is debating which guideline to adopt for his payables practices.Regardless of the NPV effect of doing so,a best ethical rule to follow in determining when to pay invoices is to

• A)stretch payables from all suppliers,not just a few
• B)stretch payables only to the extent your customers are stretching your receivables
• C)stretch only those payables that you think will not show up as paid late in the company's Dun & Bradstreet report
• D)stretch payables only when the company is financially unable to pay them

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Definitions:

Stereotypes

Oversimplified generalizations about groups of people that may not accurately reflect reality.

Expectations

Beliefs or forecasts about what will happen in the future or about how someone should behave.

Social Categorization

The process of classifying individuals into groups based on shared characteristics such as race, gender, age, etc.

Innately Programmed

Characteristics, behaviors, or instincts that are hard-wired into an organism at birth.