The additional inventory investment that is often required for new projects can be partially funded by:
A) switching to accelerated depreciation methods.
B) reducing accounts receivable.
C) decreasing equipment purchases.
D)increasing accounts payable.

Question

Quizplus · Accepted Answer

by increasing accounts payable, the company can delay payment for their purchases and free up cash that can be used to fund the additional inventory investment needed for new projects. This option also does not require the company to make any changes to their depreciation methods or equipment purchases, and does not involve any changes to their accounts receivable policies.

The Additional Inventory Investment That Is Often Required for New