Accounts Payable

What is the primary function of accounts payable in a business?

• To manage employee salaries

• To track customer orders

• To handle payments owed by the company

• To oversee marketing strategies

Which document is typically used to verify the accuracy of an accounts payable transaction?

• Invoice

• Receipt

• Bank statement

• Sales order

In the context of accounts payable, what does the term 'creditor' refer to?

• A company that owes money

• A company that is owed money

• An employee managing accounts

• A customer making a purchase

How does accounts payable impact a company's cash flow?

• It increases cash flow by delaying payments

• It decreases cash flow by requiring timely payments

• It has no impact on cash flow

• It only affects cash flow during tax season

What is the typical outcome if a company fails to manage its accounts payable effectively?

• Increased profits

• Improved supplier relationships

• Financial penalties and damaged credit

• Higher employee satisfaction

Which of the following is a common strategy for managing accounts payable efficiently?

• Paying all invoices immediately

• Ignoring payment terms

• Negotiating favorable payment terms

• Avoiding communication with suppliers

What role does technology play in modern accounts payable processes?

• It complicates the process

• It has no role

• It automates and streamlines the process

• It only helps in large corporations

Which department is typically responsible for managing accounts payable in a company?

• Human Resources

• Marketing

• Finance

• Sales

What is the relationship between accounts payable and a company's liabilities?

• Accounts payable is an asset

• Accounts payable is a liability

• Accounts payable is equity

• Accounts payable is revenue

How can effective accounts payable management benefit supplier relationships?

• By delaying payments

• By ensuring timely and accurate payments

• By reducing communication

• By increasing order quantities