If a company is experiencing cash flow problems which of the following would help alleviate the problem?
A)Increasing the rate of sales growth.
B)Paying suppliers more quickly.
C)Increasing the amount of goods sold on credit.
D)Hiring a credit manager to collect overdue receivables.

Question

Quizplus · Accepted Answer

Hiring a credit manager to collect overdue receivables would help improve cash flow by increasing the likelihood of receiving payments from customers. This would address the issue of outstanding receivables and help to increase the amount of cash coming into the company. The other choices may have some impact on cash flow, but they could also lead to additional problems or expenses. For example, increasing the rate of sales growth could require additional investment in marketing or production, while paying suppliers more quickly could reduce the available cash on hand. Increasing the amount of goods sold on credit may also increase the risk of bad debts and delays in receiving payment.

If a Company Is Experiencing Cash Flow Problems Which of the Following