DECA Financial Consulting Practice Exam 2025 - Free DECA Financial Consulting Practice Questions and Study Guide

In considering which vendor the XTY Company should prioritize for payment during a cash-flow crisis, it's important to evaluate the potential impact and implications of each vendor relationship. Usually, this prioritization hinges on factors such as the critical need for the product or service provided, potential consequences of delayed payment, and any contractual obligations that may exist.

Selecting Vendor C as the first to be paid likely indicates that this vendor provides essential goods or services that are crucial for the XTY Company's operations. Additionally, Vendor C may have more stringent payment terms, or their services may be vital for current projects, thereby affecting revenue generation or operational continuity. If Vendor C also offers favorable payment terms or discounts for early payments, settling their invoice promptly could generate future savings or maintain a critical supplier relationship.

Overall, prioritizing payment to Vendor C ensures that the most essential operational requirements are met while maintaining goodwill and trust in a vital partnership, promoting better long-term financial health for the company.