Question
When a company has a cash shortage, which of the following is an ethical way to for a company to improve its cash flow? Select
When a company has a cash shortage, which of the following is an ethical way to for a company to improve its cash flow?
Select one:
a. The company can cancel the existing credit terms at the last minute and force all customers to pay their receivables right away without any advanced notification.
b. The company can borrow from a bank through a line of credit and repay the debt when the company is in a better cash flow position.
c. The company can finance its payables so that it can choose to report cash outflows later when the company is in a better cash flow position.
d. The company can default on the amount owed to the suppliers that the company does not plan to buy from again in the future.
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