If you delay paying your suppliers by an additional ten days, then:
A)your payables turnover rate will increase.
B)you will require less bank financing of your operations.
C)the cash cycle will increase by ten days.
D)your operating cycle will lengthen by ten days.
E)your stock-out costs will rise.

Question

Quizplus · Accepted Answer

Delaying payments to suppliers means you hold onto your cash longer, reducing the need for external financing.

If You Delay Paying Your Suppliers by an Additional Ten