It is proposed at a stockholders meeting that the firm slow its rate of payments on accounts

Question:

It is proposed at a stockholders’ meeting that the firm slow its rate of payments on in order to make more funds available for operations. It is contended that this procedure will enable the firm to expand inventory, which will in turn enable the firm to generate more sales. Comment on this proposal.

Accounts Payable
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive...