Paying trade payables before cash has been received from trade receivables has a positive impact upon working capital cash flow.

Name: Paying trade payables before cash has been received from trade receivables has a positive impact upon working capital cash flow.
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Question

Quizplus · Accepted Answer

Paying trade payables before receiving cash from trade receivables can negatively impact working capital cash flow, as it reduces available cash without an immediate offsetting inflow.

Paying Trade Payables Before Cash Has Been Received from Trade