Which of the following statements about accounts payable is not true?
A)They are usually due within 30 to 60 days.
B)They normally carry implicit interest charges.
C)There may be a penalty for late payment.
D)They are typically used to finance inventory purchases.

Question

Quizplus · Accepted Answer

Accounts payable do not normally carry implicit interest charges. They are essentially short-term liabilities owed to suppliers where the cost is typically the face value of the invoice amount, without additional interest, unless payments are made after the due date, which might incur late fees or penalties, not implicit interest charges.

Which of the Following Statements About Accounts Payable Is Not