If a firm is involuntarily stretching its accounts payable,then this is probably a sign that it is undercapitalized,that is,that it needs more working capital to support its operations.

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When a firm is stretching its accounts payable, it means that it is taking longer to pay its bills to suppliers. This can be a sign that the firm does not have enough cash to make payments on time, indicating a lack of working capital. Therefore, Option A is true, and Option B is false.

If a Firm Is Involuntarily Stretching Its Accounts Payable,then This