The contractor's outflow of cash can be controlled by
A) paying a bill as soon as it is received.
B) delaying payment until cash is received to pay the bill.
C) delaying payment until it is due.
D) never paying bills.

Question

Quizplus · Accepted Answer

Delaying payment until it is due allows the contractor to hold onto their cash for as long as possible before paying their bills. This helps to ensure that they have enough cash on hand to cover other necessary expenses and maintain their business operations. Paying bills as soon as they are received or never paying bills are not sustainable options. Delaying payment until cash is received can also be risky as it assumes timely payments will be received from other sources.

The Contractor's Outflow of Cash Can Be Controlled by