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

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 practice, however, must be managed carefully to maintain good relations with employees and comply with legal requirements.

One Way a Firm Can Reduce the Amount of Cash