One way a firm can reduce the amount of cash it needs in any one month is to
A) slow down the collection of receivables
B) delay the payment of wages
C) speed up the payment of taxes
D) speed up the payment of payables

Question

Quizplus · Accepted Answer

Delaying the payment of wages allows a firm to hold onto its cash for a longer period, reducing the immediate need for cash. This can improve short-term cash flow, although it may have other implications for employee relations and legal compliance.

One Way a Firm Can Reduce the Amount of Cash