Stretching the accounts payable means to ________.
A) reduce the trade credit period
B) raise the amount of accounts payable
C) decrease the discount percentage offered
D) increase the trade credit period

Question

Quizplus · Accepted Answer

Stretching the accounts payable means increasing the trade credit period, which allows the company to delay making payments to its suppliers. This can help improve a company's cash flow in the short term, but it can also strain supplier relationships if payments are consistently delayed.

Stretching the Accounts Payable Means to ________