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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
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). |
B). | 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 |
C). | If the accounts payable days averages 40 days and the terms are 2/10 net 60, the firm can conclude that it generally pays late and may be risking supplier difficulties |
D). | If the accounts payable days is 23 days and the terms are 2/10 net 30, the firm may not be capitalizing on the discount, and may not be paying its vendors when it should be. |
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