Which statement concerning the average settlement period for accounts payable is correct?
A)It is always best for the business to make creditors wait for their money for as long as possible.
B)It is best to pay accounts payable as quickly as possible.
C)Accounts payable provide a free source of finance for a business.
D)A change in the accounts payable turnover period of 56 days to 65 days means that accounts payable are being paid faster.

Question

Quizplus · Accepted Answer

Accounts payable represent a form of credit from suppliers, allowing businesses to hold onto their cash for longer periods without incurring immediate costs, effectively acting as an interest-free loan.

Which Statement Concerning the Average Settlement Period for Accounts Payable