If a Firm Increases Its Accounts Payable Period, Other Things

question 41

True/False

If a firm increases its accounts payable period, other things equal, it increases the cash conversion cycle.

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Definitions:

S-type Corporation

A special designation that allows corporations to pass corporate income, credits, and deductions directly to their shareholders for federal tax purposes.

Taxation

The practice by which a government collects money from individuals, businesses, and other organizations to fund public services and initiatives.

Partnership

A business structure where two or more individuals manage and operate a business in accordance with the terms and objectives set out in a Partnership Agreement.

Finance Department

The division within a company that manages and oversees financial operations, including budgeting, forecasting, and investment analysis.