Question: If accounts payable increased to $ 9 7 , 8 9 9 . 5 4 in 2 0 2 2 and keeps rising, what does

If accounts payable increased to $97,899.54 in 2022 and keeps rising, what does this signify and what action should be taken?
A. The company is efficiently managing its cash flow; no action needed.
B. The company may be delaying payments too long, potentially harming credit terms; consider quicker payment strategies.
C. Increased accounts payable is beneficial for long-term growth; invest more in operations.
D. The company should immediately pay off all accounts payable.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!