Which of the Following Would Lengthen the Operating Cycle

question 30

Multiple Choice

Which of the following would lengthen the operating cycle?

• A)Faster collection of accounts receivables.
• B)Selling inventory in a shorter period of time.
• C)Increasing the number of customers who paid cash.
• D)Relaxing credit terms and allowing customers more time to pay.

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Definitions:

Production

The process of combining various material inputs and immaterial inputs (plans, know-how) to make something for consumption (the output).

Germany

A country in Central Europe known for its rich history, cultural heritage, and economic prowess.

Production

The process of creating goods or services using inputs such as labor, raw materials, and machinery.

Opportunity Cost

The cost of forgoing the next best alternative when making a decision or choosing to utilize resources in a particular way.