The additional inventory investment that is often required for new projects can be partially funded by:
A)Switching to accelerated depreciation methods
B)Reducing accounts receivable
C)Decreasing equipment purchases
D)Increasing accounts payable

Question

Quizplus · Accepted Answer

Increasing accounts payable allows the company to delay payment to suppliers, thus freeing up cash that can be used for the additional inventory investment needed for new projects. This option does not involve reducing equipment purchases or switching to accelerated depreciation methods, and reducing accounts receivable may not be a viable option for all businesses.

The Additional Inventory Investment That Is Often Required for New