On reviewing a company's financial statement, you note that accounts payable days decreased from 46 days in 2022 to 39 days in 2023. The average accounts payable days for the previous three years were around 46 days. Management explained that their suppliers had complained about the late payments, so the company made some improvements to their account payable department. They simplified the accounts payable process, and their accounts payable staff now enters terms for each vendor in the system and runs aging reports to ensure on-time payments. What is your conclusion about whether the trend in accounts payable days is likely to continue? 

A) The change in accounts payable days is likely to be permanent, and the provided explanation is reasonable 

B) the change in accounts payable days is temporary, and the provided explanation is reasonable 

C) the change in accounts payable days is temporary, but most likely caused by factors other than those given by management 

Answer rating: 100% (QA)

Based on the information provided the most reasonable conclusion is B ... View the full answer