Improving cash flow in relation to debtors and creditors, respectively, requires:
A) slowing collections and speeding up payments.
B) speeding up collections and slowing payments.
C) slowing collections and slowing payments.
D) speeding up collections and speeding up payments.

Question

Quizplus · Accepted Answer

Speeding up collections means getting paid by debtors faster, which will increase cash flow. Slowing payments to creditors means holding onto cash longer, which also enables better cash flow. Therefore, Option B is the best choice.

Improving Cash Flow in Relation to Debtors and Creditors, Respectively