1. Which of the following statements about accounts payable is not true?

a) They normally carry implicit interest charges.

b) They are typically used to finance inventory purchases.

c) There may be a penalty for late payment.

d) They are usually due within 30 to 60 days.

2. All current liabilities have fixed due dates and fixed payment amounts.

a) True

b) False

3. The difference between the face value of a liability and its present value is due to the time value of money.

a) True

b) False

4. Companies must always accrue interest between the last loan payment date and the companys reporting date.

a) True

b) False