Which of the following would not be of assistance in managing an entity's cash flow most efficiently?

Question

Quizplus · Accepted Answer

Aiming to repay creditors in the shortest possible time or purchasing everything for cash may lead to a depletion of cash reserves, making it difficult to manage cash flow efficiently. It is better to use creditor terms to ensure a smooth cash flow, allowing the entity to pay its debts on time while maintaining sufficient cash reserves. Improving the efficiency of collecting cash from debtors can also help in managing cash flow, as can reducing unnecessary stock levels.

Which of the Following Would Not Be of Assistance in Managing