Smaller privately held companies may not maintain an accounts payable master file by vendor. These companies pay on the basis of
A) vendors' monthly statements.
B) individual vendors' invoices.
C) the accounts payable account in the general ledger.
D) dunning letters.

Question

Quizplus · Accepted Answer

Smaller privately held companies may not have the resources or need to maintain an accounts payable master file by vendor. As a result, they may pay their bills on the basis of individual vendor invoices, rather than maintaining a central vendor database or relying on monthly statements or dunning letters.

Smaller Privately Held Companies May Not Maintain an Accounts Payable