A good rule of thumb for managing accounts payable is to:
a. Never pay until the bill is thirty days past due.
b. Delay paying for as long as is acceptable under the agreement.
c. Pay as soon as the bill is received.
d. Avoid using credit for purchases.
Answer is b. Delay paying for as long as is acceptable under the agreement.
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Which of the following is a company owned and controlled by another company?
a. multinational b. parent company c. global company d. subsidiary
The WTO (World Trade Organization) ______.
a. replaced the GATT in 1945 b. governs trade in goods but not services c. has opened up markets for regulated industries (e.g., agriculture and textiles) d. is governed by NAFTA
[The following information applies to the questions displayed below.] Darlington Company entered into the following business events during its first month of operations. The company uses the perpetual inventory system. 1) The company purchased $12,500 of merchandise on account under terms 2/10, n/30. 2) The company returned $1,200 of merchandise to the supplier before payment was made. 3) The liability was paid within the discount period. 4) All of the merchandise purchased was sold for $18,800 cash. What effect will the return of merchandise to the supplier in event (2) have on Darlington's financial statements?
A. Assets and stockholders' equity decrease by $1,176. B. Assets and liabilities decrease by $1,200. C. Assets and liabilities decrease by $1,176. D. None. It is an asset exchange transaction.
The term actus reus is often used to describe a guilty:
a. thought. b. mind. c. deed. d. intent