When managing accounts payable, a good strategy would be to ________.
A) pay as early as possible creating better credit rating for a firm
B) pay as slowly as possible without damaging a firm's credit rating
C) pay big customers early to maintain good relations and small customers on a later date
D) pay only when a firm has adequate funds to meet its liabilities

Question

Quizplus · Accepted Answer

It is important to manage accounts payable efficiently to maintain a good credit rating for the firm. However, paying too early can lead to cash flow problems and paying too late can damage relationships with suppliers. Therefore, the best strategy is to pay as slowly as possible without damaging the credit rating. This can be achieved by negotiating favorable payment terms with suppliers and closely monitoring cash flow to ensure timely payments without compromising the firm's financial stability.

When Managing Accounts Payable, a Good Strategy Would Be to ________