What determines whether a company can pay its bills on time?
A)Adequate cash flow
B)High employee moral
C)Ability to reduce expenses easily
D)Talent of its sales force

Question

Quizplus · Accepted Answer

Adequate cash flow is the most critical factor in determining whether a company can pay its bills on time. Without sufficient cash flow, a company cannot meet its financial obligations, which can lead to late payment penalties, damaged supplier relationships, and reduced creditworthiness.

What Determines Whether a Company Can Pay Its Bills on Time