The additional inventory investment that is often required for new projects is partially offset by:
A) switching to accelerated depreciation methods.
B) reducing accounts receivable.
C) decreasing equipment purchases.
D) increasing accounts payable.

Question

Quizplus · Accepted Answer

By increasing accounts payable, a company can delay payments to suppliers, thereby freeing up cash for the additional inventory investment required for new projects. This partially offsets the financial burden of the new projects.

The Additional Inventory Investment That Is Often Required for New