If You Delay Paying Your Suppliers by an Additional Ten

question 399

Multiple Choice

If you delay paying your suppliers by an additional ten days, then:

• A) Your payables turnover rate will increase.
• B) You will require less bank financing of your operations.
• C) The cash cycle will increase by ten days.
• D) Your operating cycle will lengthen by ten days.
• E) Your stock-out costs will rise.

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