Firms Have Some Choice as to When They Disburse Cash

question 127

Multiple Choice

Firms have some choice as to when they disburse cash.Delaying payments to suppliers and others during the last several days of an accounting period conserves cash and thereby _____ cash flow from operations for that period, and _____ cash flow from operations during the second period.

• A)increases; decreases
• B)increases; increases
• C)decreases; ; increases
• D)decreases; decreases
• E)increases; has no effect