Which of the following strategies is most likely to be considered good payables management()
A. Paying trade invoices on the day they arrive.
B. Paying invoices on the last possible day to still get the supplier’s discount for early payment.
C. Taking trade discounts only if the firm’s annual return on short-term investments is less than the discount percentage.
参考答案:B
解析:
Paying invoices on the last day to get a discount (for early payment) ifs often the most advantageous strategy for a firm. If the annualized percentage cost of not taking advantage of the discount is less than the firm’s short-term cost of funds, it would be advantageous to pay on the due date. Paying prior to the discount cut-off date or prior to the due date sacrifices interest income for no advantage.