A Small Business Owner Could Accelerate Accounts Payable By

question 104

Multiple Choice

A small business owner could accelerate accounts payable by:

• A)having customers mail printed orders to you.
• B)sending or faxing invoices the day of shipment.
• C)slowing their own accounts payable.
• D)depositing customer checks and credit card receipts weekly.

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Definitions:

Service Department

An organizational unit that provides support and services to other units within the organization, rather than producing goods or services for external customers.

Internal Service Departments

Departments within an organization that provide essential services to other departments rather than external customers, such as IT support or human resources.

Inventory Control

The processes and procedures used to manage the ordering, storage, and use of components that a company will use in the production process or the management of stock available for sale.

Investment Turnover

A ratio used to measure the efficiency of a company's use of its investments in generating sales revenue, indicating how well the company is utilizing its assets.