When using the Bardahl formula, an increase in accounts payable (while holding purchases and operating expenses constant) has which of the following effects on the working capital requirements?

Question

Quizplus · Accepted Answer

An increase in accounts payable means that the company is taking longer to pay its suppliers, which effectively provides more cash on hand and reduces the immediate need for working capital.

When Using the Bardahl Formula, an Increase in Accounts Payable