Maintaining a high level of accounts payable requires a business to have a high level of current assets.

Question

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A high level of accounts payable means that a business owes a lot of money to its suppliers. This means that the business has a lot of current liabilities. To offset these liabilities, the business needs to have a high level of current assets, such as cash, inventory, and accounts receivable.

Maintaining a High Level of Accounts Payable Requires a Business