Purchase Solution

Should companies pay bills when they are due or earlier?

Not what you're looking for?

Ask Custom Question

Do you think that companies should maximize their payment power by only paying bills when they are due rather than early so they can use the cash flow on something else?

Purchase this Solution

Solution Summary

In a 239-word solution, the response explains how good cash management policies should work. There are practical examples included for better understanding of why cash management policies are important.

Solution Preview

Absolutely, a company should pay bills when they are due and not much earlier, unless a discount is involved. Good cash management policies would dictate this procedure.

Here's an example: let's say you are the CFO for a small manufacturing company. In a normal month, your company pays vendor invoices of about $100,000. Your accounting system ...

Purchase this Solution


Free BrainMass Quizzes
Cost Concepts: Analyzing Costs in Managerial Accounting

This quiz gives students the opportunity to assess their knowledge of cost concepts used in managerial accounting such as opportunity costs, marginal costs, relevant costs and the benefits and relationships that derive from them.

Paradigms and Frameworks of Management Research

This quiz evaluates your understanding of the paradigm-based and epistimological frameworks of research. It is intended for advanced students.

Operations Management

This quiz tests a student's knowledge about Operations Management

Employee Orientation

Test your knowledge of employee orientation with this fun and informative quiz. This quiz is meant for beginner and advanced students as well as professionals already working in the HR field.

Understanding Management

This quiz will help you understand the dimensions of employee diversity as well as how to manage a culturally diverse workforce.