It is possible for a firm to collect payment on a sale prior to paying its suppliers for the items sold.

Question

Quizplus · Accepted Answer

This is possible if the firm has enough cash flow or credit available to cover the cost of the items sold before paying its suppliers. However, it is important for the firm to manage its cash flow carefully to ensure it can meet its obligations to suppliers and maintain good relationships with them.

It Is Possible for a Firm to Collect Payment on a Sale