What are the typical payment terms for accounts payable?

Account Payable Quiz

Quiz
•
Business
•
University
•
Hard
Kasmani Satar
FREE Resource
10 questions
Show all answers
1.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
60 days
30 days
90 days
45 days
2.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Explain the concept of accrual accounting in relation to accounts payable.
Accrual accounting only recognizes expenses when cash is exchanged, regardless of when revenues are incurred.
Accrual accounting recognizes expenses and revenues when they are incurred, regardless of when cash is exchanged.
Accrual accounting only recognizes revenues when cash is exchanged, regardless of when expenses are incurred.
Accrual accounting recognizes expenses and revenues only when cash is exchanged.
3.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
How does aging of payables help in managing accounts payable?
By causing confusion in the accounts payable system
By delaying payments to suppliers
By providing a clear picture of the outstanding balances and helping to prioritize payments.
By increasing the amount of outstanding balances
4.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What is the difference between net 30 and net 60 payment terms?
Net 30 payment terms require payment within 30 days, while net 60 payment terms require payment within 60 days.
Net 30 payment terms require payment within 20 days, while net 60 payment terms require payment within 40 days.
Net 30 payment terms require payment within 45 days, while net 60 payment terms require payment within 75 days.
Net 30 payment terms require payment within 60 days, while net 60 payment terms require payment within 30 days.
5.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Why is it important for a company to accurately track its accounts payable aging?
To monitor employee attendance and productivity
To track customer satisfaction and feedback
To improve employee morale and satisfaction
To manage cash flow and identify potential issues with vendors
6.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Discuss the impact of extended payment terms on accounts payable.
Extended payment terms can impact accounts payable by increasing the amount of outstanding payments and potentially causing cash flow issues for the company.
Extended payment terms have no impact on accounts payable
Extended payment terms improve cash flow for the company
Extended payment terms reduce the amount of outstanding payments
7.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
How does the aging of payables affect a company's cash flow?
It increases the amount of cash outflow as payables become due and need to be paid.
It increases the amount of cash inflow
It has no effect on cash flow
It decreases the amount of cash outflow
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