All else equal,increasing the assumed payables period in a financial forecast will decrease external funding required.

Question

Quizplus · Accepted Answer

When the assumed payables period is increased, it means that the company is taking longer to pay its bills to suppliers. This leads to an increase in the cash balance of the company, which will reduce the amount of external funding required to finance operations. Therefore, increasing the assumed payables period will decrease the external funding required.

All Else Equal,increasing the Assumed Payables Period in a Financial