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TOPIC QUESTION - PAPER 1
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April 3, 2026 at 8:24:20 AM
May/June 2022
Version 3
5.0 Financial Information and Decisions
5.2 Cash-Flow Forecasting and Working Capital
YOUR ANSWER
delaying the payments to supplier will make cash outflow slower and not fast which is great for a small bussines as it will give the bussines opportunties to plan their bussines and finacial plan over the time
reducing the period time for customers to pay on credit will make the cash inflow faster which is important for a small bussines to be able to pay day to day expenses and afford wages
even though delaying the payments to supplies give bussines the chance to plan their money i think reducing the period time for creditors is more benefical as planning can be done anytime and faster ,but getting more inflows will help the small bussines especially at the beggining
Grade:
3/6
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