Which of the Following Will Decrease the Operating Cycle

question 82

Multiple Choice

Which of the following will decrease the operating cycle?

• A) The cash cycle increases.
• B) The days' sales in inventory decreases by three days but the average collection period increases by two days.
• C) The average payment period increases.
• D) All of these choices are correct.

---

Definitions:

Hematocrit

Hematocrit is a measure of the volume percentage of red blood cells in the blood, used in diagnosing and monitoring various medical conditions.

Blood Viscosity

A measurement of the resistance of blood to flow, which can affect blood pressure and circulation, influenced by factors such as hematocrit and plasma protein levels.

Respiratory Pump

A mechanism involving the muscles of the thorax and abdomen, which helps in moving air in and out of the lungs during breathing.

Diaphragm

a large, dome-shaped muscle located at the base of the lungs that plays a crucial role in breathing.