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:

Alfred Kinsey

An American biologist and sexologist who is known for his research on human sexual behavior, notably through the publication of the Kinsey Reports.

William Masters

A pioneering researcher in the field of human sexuality, best known for his work with Virginia Johnson and their development of the sexual response cycle.

Refractory Period

A period immediately following stimulation during which a nerve or muscle is unresponsive to further stimulation.

Postorgasmic Period

The phase following orgasm, where physiological and psychological changes occur, including relaxation and a sense of wellbeing.