Scenario 8-1. Dea's Drugstore is currently having cash-flow problems. As the bills come due, Dea is having more difficulty ensuring that there is sufficient cash to pay those bills. It is a relatively new problem for her business, and she is not sure what to do. The only changes that she is aware of are some new requirements in the way insurance companies are reimbursing their customers for prescription drugs. Overall, inventory in the store is moving as usual and expenses have not increased from last year.
-In Scenario 8-1, which of the following areas may be contributing heavily to Dea's cash flow problems?
A) sales
B) expenses
C) accounts receivables
D) inventory costs

Question

Quizplus · Accepted Answer

The change in how insurance companies are reimbursing their customers for prescription drugs could be causing delays in payments to Dea's Drugstore, thus affecting the accounts receivables and contributing to the cash flow problems.