Which one of the following is the most ethical practice related to cash disbursement management?
A)Intentionally delaying payments by creating a complex accounts payable system
B)Taking the cash discount but paying after the discount period
C)Paying a supplier from a zero-balance account
D)Purposely losing a supplier's invoice and requiring the supplier to submit another copy
E)Mailing a check from the most remote location possible

Question

Quizplus · Accepted Answer

Paying a supplier from a zero-balance account ensures that the company only pays what it owes and eliminates any opportunity for fraud or embezzlement. Intentionally delaying payments, taking cash discounts but paying after the discount period, purposely losing invoices, and mailing checks from remote locations are all unethical practices that can harm relationships with suppliers and damage the company's reputation.

Which One of the Following Is the Most Ethical Practice