If One of Your Firm's Customers Is "Stretching" Its Accounts

question 44

True/False

If one of your firm's customers is "stretching" its accounts payable, this may be a nuisance but it does not represent a real financial cost to your firm as long as the customer periodically pays off its entire balance.

---

Definitions:

Nonprofit Boards

Governing bodies within nonprofit organizations that provide oversight, strategic direction, and ensure the organization’s resources are used efficiently towards achieving its mission.

Responsibility

The state or fact of having a duty to deal with something or of having control over someone, often implying accountability for one's actions.

Strategic Planning

The process of defining an organization's strategy or direction and making decisions on allocating its resources to pursue this strategy.

Organization's Success

The achievement of the specific goals and objectives set by an organization, measured by various indicators such as profitability, market share, or social impact.