Delaying payments to suppliers and others during the last several days of an accounting period conserves cash and thereby increases cash flow from operations for that period.

Question

Quizplus · Accepted Answer

Delaying payments to suppliers and others can temporarily increase cash on hand during the accounting period, leading to a higher cash flow from operations. However, it can also damage relationships with suppliers and ultimately harm the business in the long term. It is important for companies to manage their cash flow in a sustainable and responsible manner.

Delaying Payments to Suppliers and Others During the Last Several