Use the following statements to answer this question:
I.Delaying payment of payables can create a buffer for the firm to keep its working capital.
II.If the firm cannot change its credit, payment, and inventory policies, it has to slow its growth to survive.

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Quizplus · Accepted Answer

Both statements are correct. Delaying payment of payables can indeed help a firm maintain its working capital by keeping cash longer. If a firm is unable to adjust its credit, payment, and inventory policies to improve cash flow, slowing its growth may be necessary to avoid overextending its financial resources.

Use the Following Statements to Answer This Question