If You Delay Paying Your Suppliers by an Additional Ten

question 399

Multiple Choice

If you delay paying your suppliers by an additional ten days, then:

• A) Your payables turnover rate will increase.
• B) You will require less bank financing of your operations.
• C) The cash cycle will increase by ten days.
• D) Your operating cycle will lengthen by ten days.
• E) Your stock-out costs will rise.

Grasp the primary objectives of financial accounting and its relevance to external users.

Recognize the importance and impact of ethics and social responsibility in accounting and business operations.

Identify and distinguish between the various types of business activities: operating, investing, and financing.

Learn the definitions and roles of assets, liabilities, equity, revenues, and expenses in the accounting equation.

---

Definitions:

Communication

The process of exchanging information, ideas, and feelings through various methods, such as speech, writing, or gestures, enabling understanding between individuals or groups.

Feedback

The process of providing information or comments about something, such as a person's performance or a product's quality, to help improve or affirm it.

Transmission of Meaning

involves conveying thoughts, ideas, or information from one entity to another through a mutually understood medium or channel.

Communication

The exchange or transmission of information, ideas, or feelings between individuals or groups, often through a mutually understood system of symbols.