Question
What is the main goal of accounts payable management?
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Answer
Delay payment without harming supplier relationships or losing discounts.
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Question
Why is a shorter cash conversion cycle generally preferable?
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Answer
Cash is tied up for fewer days, reducing financing needs.
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Question
If a firm collects cash from customers before paying suppliers, what does that imply about its cash conversion cycle?
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Answer
It has a negative CCC.
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Question
A firm's CCC rises relative to industry peers. What problem might this signal?
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Answer
Weaker collections, inventory issues, or supplier pressure.
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