Question

Good cash management means that invoices are not paid until the ____________ of the ________________________ period.

Answer 1

Good cash management entails paying invoices at the end of the credit terms period to optimize the use of cash on hand and maintain supplier relationships without incurring late fees.

Step-by-step explanation:

Good cash management means that invoices are not paid until the end of the credit terms period. This strategy allows a business to make use of the cash on hand for a longer period, potentially using it for income-generating activities or to earn interest. Paying invoices at the end of the credit terms also ensures that the business does not incur any late fees while still maintaining a good relationship with suppliers by honoring the agreed upon terms.