Which of the following statements is FALSE?
A)Suppliers may react to a firm whose payments are always late by imposing terms of cash on delivery (COD)or cash before delivery (CBD).
B)Some firms ignore the payment due period and pay later, in a practice referred to as 'pushing the accounts payable'.
C)Similar to the situation with its accounts receivable, a firm should monitor its accounts payable to ensure that it is making its payments at an optimal time.
D)If the accounts payable outstanding is 40 days and the terms are 2/10 net 30, the firm can conclude that it generally pays late and may be risking supplier difficulties.

Question

Quizplus · Accepted Answer

The Answer of Which of the following statements is FALSE?
A)Suppliers may react to a firm whose payments are always late by imposing terms of cash on delivery (COD)or cash before delivery (CBD).
B)Some firms ignore the payment due period and pay later, in a practice referred to as 'pushing the accounts payable'.
C)Similar to the situation with its accounts receivable, a firm should monitor its accounts payable to ensure that it is making its payments at an optimal time.
D)If the accounts payable outstanding is 40 days and the terms are 2/10 net 30, the firm can conclude that it generally pays late and may be risking supplier difficulties.

Which of the Following Statements Is FALSE