The longer the firm's accounts payable period,the:

Question

Quizplus · Accepted Answer

A longer accounts payable period means the firm is taking longer to pay its suppliers, which results in a smaller amount of cash tied up in the firm's working capital. This means that the firm needs to invest less in net working capital, making choice (C) the correct answer. A longer accounts payable period may or may not affect the cash cycle, accounts receivable period or inventory period depending upon the firm's specific circumstances.

The Longer the Firm's Accounts Payable Period,the