Why Is It in the Firm's Interest to Withhold Payment

question 75

Multiple Choice

Why is it in the firm's interest to withhold payment as long as it can?

• A) Withholding payment increases the value of the accounts payable that may be subsequently factored.
• B) The longer the firm withholds payment,the longer it will have cash available for investments or other uses.
• C) The longer it withholds interest,the higher the amount that can be factored from accounts receivable.
• D) The longer it withholds payments the more it can raise the selling price of its own goods.
• E) The longer it withholds funds,the lower the interest rate will be.

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