Answer:
FALSE
Step-by-step explanation:
Companies buy items on credit for a variety of reasons. The main one is to maintain working capital. Companies use cash money for their daily needs and for payments that are due on the present date. Thus, when companies buy on credit at present, the payment amount will enter the future payment schedule. On the due date, the credit will be paid. This is normal corporate finance practice and should not be associated with a company's inability to pay its obligations.