Which One of the Following Statements Is Correct Concerning the Cash

question 204

Multiple Choice

Which one of the following statements is correct concerning the cash cycle?

• A) The longer the cash cycle, the more likely a firm will need external financing.
• B) Increasing the accounts payable period, increases the cash cycle.
• C) A positive cash cycle is preferable to a negative cash cycle.
• D) The cash cycle can exceed the operating cycle if the payables period is equal to zero.
• E) Adopting a more liberal accounts receivable policy will tend to decrease the cash cycle.

---

Definitions:

Resolve Conflict

A process aimed at addressing and finding a solution to a disagreement or dispute between parties.

Diplomatic

Pertaining to the management of relations between nations through negotiation and dialogue, often characterized by tact and sensitivity.

Report Draft

An initial version of a report that is created for the purpose of review, feedback, and further revision.

Another Culture

Refers to a different set of social norms, values, behaviors, and traditions practiced by a group of people distinct from one's own cultural background.