Which of the Following Will Increase the Operating Cycle

question 5

Multiple Choice

Which of the following will increase the operating cycle?

• A) The cash cycle decreases by one day but the average payment period increases by two and a half days.
• B) The days' sales in inventory decreases by one day but the average collection period increases by two days.
• C) COGS stays the same but inventory increases.
• D) All of these choices are correct.

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Definitions:

Generic Phases

Broad stages or steps that are commonly found in various processes, projects, or the development of systems, often including initiation, planning, execution, monitoring, and closure.

Working Through

A process in psychotherapy aimed at helping clients understand, confront, and resolve their issues and conflicts.

Intrapsychic Conflict

A psychological struggle occurring within the mind of an individual, often part of psychoanalytic theories.

Drive Theory

A psychological perspective that posits human behavior is motivated by innate, biological drives such as hunger, thirst, and sexuality.