[amp_mcq option1=”Reducing trade receivables” option2=”Reducing inventories” option3=”Increasing trade payables” option4=”Reducing trade payables” correct=”option3″]<\/p>\n
The correct answer is: C. Increasing trade payables<\/strong>.<\/p>\n Short-term cash flow improvement may not be achieved by increasing trade payables because it would mean that the company is taking longer to pay its suppliers. This could damage the company’s relationship with its suppliers and could lead to higher prices in the future.<\/p>\n Reducing trade receivables, inventories, and reducing trade payables are all ways to improve short-term cash flow. Reducing trade receivables means collecting payments from customers more quickly. Reducing inventories means selling products more quickly or producing less inventory. Reducing trade payables means paying suppliers more slowly.<\/p>\n However, increasing trade payables is not a good way to improve short-term cash flow. It is important to maintain good relationships with suppliers and to pay them on time. If a company takes too long to pay its suppliers, they may start to charge higher prices or may even stop selling to the company. This could damage the company’s business and could lead to financial problems.<\/p>\n","protected":false},"excerpt":{"rendered":" [amp_mcq option1=”Reducing trade receivables” option2=”Reducing inventories” option3=”Increasing trade payables” option4=”Reducing trade payables” correct=”option3″]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[700],"tags":[],"class_list":["post-33728","post","type-post","status-publish","format-standard","hentry","category-business-finance","no-featured-image-padding"],"yoast_head":"\n