Which of the following statements incorrectly describes the accounts payable turnover ratio?
A)A high ratio indicates that suppliers are being paid in a timely manner.
B)The ratio increases when inventory is sold on account regardless of the sales price.
C)The ratio can be manipulated by aggressively paying off accounts payable at year-end.
D)The ratio is not affected by the choice of inventory accounting methods.

Question

Quizplus · Accepted Answer

The Answer of Which of the following statements incorrectly describes the accounts payable turnover ratio?
A)A high ratio indicates that suppliers are being paid in a timely manner.
B)The ratio increases when inventory is sold on account regardless of the sales price.
C)The ratio can be manipulated by aggressively paying off accounts payable at year-end.
D)The ratio is not affected by the choice of inventory accounting methods.

Which of the Following Statements Incorrectly Describes the Accounts Payable