Which of the following statements is false?
A) Trade payables, if managed appropriately, can be a cost-free source of finance
B) An excessive delay in paying creditors is a good way to extend a cost-free source of finance
C) Deferment in the payment of taxes is one way of addressing liquidity problems
D) None of the above statements are false

Question

Quizplus · Accepted Answer

An excessive delay in paying creditors is not a good way to extend a cost-free source of finance as it can damage the company's reputation and relationship with suppliers, potentially leading to higher costs and reduced availability of credit in the future. It is important to maintain good relationships with suppliers and pay them in a timely manner to ensure continued access to trade credit.

Which of the Following Statements Is False