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Advantages of keeping trade payables low.

Forums › Ask CIMA Tutor Forums › Ask CIMA F1 Tutor Forums › Advantages of keeping trade payables low.

Viewing 2 posts - 1 through 2 (of 2 total)
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  • December 3, 2019 at 11:12 am #554616
    shadyplayscr7
    Member
    • Topics: 19
    • Replies: 25
    • ☆

    So this image has adavatages-
    High(Left hand side)
    and keeping it low is on Right hand side

    https://i.postimg.cc/fLFXSvwt/15753713035306838319383058364098.jpg

    I have doubt in the advatages of keeping trade payables low (Left bottom coner of image) It just doesnt make sense, Or else its a printing error?

    December 13, 2019 at 10:06 pm #555885
    P2-D2
    Keymaster
    • Topics: 4
    • Replies: 7079
    • ☆☆☆☆☆

    Hi,

    It doesn’t make sense in my opinion either unless I’m missing something. If payables are low then we have been paying quickly and so would be getting the prompt payment discounts.

    Thanks

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