Which of the following is NOT a reason why a firm may typically choose not to stretch its accounts payable?
A) Delaying payment can increase the effective cost of credit in some circumstances.
B) The supplier may demand COD or CBD in the future.
C) The supplier may choose to discontinue business with delinquent customers.
D) The firm's credit rating may be damaged.

Question

Quizplus · Accepted Answer

Delaying payment can sometimes increase the cost of credit due to potential additional fees, higher interest rates, or other penalties, which is a reason a firm might choose to avoid stretching its accounts payable, not a reason for choosing to do so.

Which of the Following Is NOT a Reason Why a Firm