How can an introduction of new line of stock increase CTO??

[yesyes123]

My answer is"  the purchase of extra stock would increase Creditors turnover as purchases increase if the payment rate remains the same"

Is that answer correct?

[likeialwaysdo]

yeah that sounds correct, im sure there are lots of answers. if the question is worth  2 marks you might want to expand on it you know>? just watch out for marks, theyre usually the indicator of how many points you need to raise in your response.

i would just mention how expansion of stock lines may take time to actually generate sales/cash to pay back creditors etc.etc...