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Customer payment terms
Assessing the Influence of Altered Customer Payment Terms on Current Liabilities
December 23, 2023
What impact do changes in customer payment terms have on current liabilities?
Changes in customer payment terms impact current liabilities by altering the timing of accounts payable settlements. Lengthening payment terms elongates the period for accounts payable, potentially increasing short-term obligations. Conversely, shorter payment terms reduce current liabilities, impacting cash flow and relationships with suppliers.
Tags : Customer Payment Terms , Accounts Payable , Financial Relationships