True or False: For vendor invoices, it is always best to pay the bill as soon as possible.

"That statement is false. When it comes to Accounts Payable and the payment of invoices, it is better to use the vendor payment terms to our advantage. If we pay bills as soon as they are received, that ties up cash that could have been used for other purposes. The only time it may be advantageous to pay sooner than the due date is if there is a discount for paying earlier."

That is false. It is not always best to pay vendor invoices as soon as you receive them unless there is a deduction associated with closing the invoice early. It is best to utilize the invoice payment terms because it allows us to maintain an average cash flow. By paying early, you risk the chance of tying up cash that is needed elsewhere. That is my opinion on paying vendor invoice payments early.