A major benefit to firms that rely on accounts payable as a source of short-term financing is that it can defer payment of goods and services received.A potential cost is that the firm might be foregoing discounts for early repayment.

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Accounts payable allows a firm to delay payment for goods and services received, which can provide short-term financing benefits. However, by delaying payment, the firm may miss out on discounts offered for early repayment, which can result in a potential cost.

A Major Benefit to Firms That Rely on Accounts Payable