Which Statement Concerning the Operating Cash Cycle (OCC) Is True

question 63

Multiple Choice

Which statement concerning the operating cash cycle (OCC) is true?

• A) It is possible to have a negative OCC.
• B) Reducing the time period for which inventory is held shortens the OCC.
• C) The longer the OCC, the greater the amount of working capital required.
• D) All of the statements are true.

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Definitions:

Fluctuations

variations or changes in state or quantity over time, often seen in things like temperatures, stock market values, or energy levels.

Energy Level

Describes the overall vitality or intensity of physical and mental activity available to an individual.

Consciousness

The awareness of internal and external stimuli, including thoughts, feelings, and surroundings.

Biological Functioning

Refers to the physiological and biochemical processes that enable living organisms to live, grow, and reproduce.