Extending accounts receivable is one of the primary sources of working capital for many startups and growing firms.

Question

Quizplus · Accepted Answer

Accounts receivable represents money owed to a company by its customers, and extending it does not directly provide working capital. Instead, it can tie up capital, as the company waits to receive payment. Working capital is typically sourced from cash, inventory, and short-term liabilities management.

Extending Accounts Receivable Is One of the Primary Sources of Working