Which of the following policies will reduce a retailer's investment in working capital?
A)Using cash rather than trade credit for inventory purchases
B)Accepting major credit cards rather than offering store credit
C)Keeping unsold seasonal merchandise in storage so that it can be offered again the following year
D)All of the above

Question

Quizplus · Accepted Answer

Accepting major credit cards rather than offering store credit reduces the retailer's investment in working capital by decreasing accounts receivable and improving cash flow.

Which of the Following Policies Will Reduce a Retailer's Investment