Which One of the Following Will Shorten Both the Operating

question 396

Multiple Choice

Which one of the following will shorten both the operating and the cash cycles?

• A) A decrease in the length of time a firm takes to pay its suppliers.
• B) A change in the collection policy from net 30 to net 45.
• C) A decrease between the times a supplier is paid for a product and the time when payment is collected for that product.
• D) An increase in the accounts payable turnover rate.
• E) An increase in the number of times inventory is sold and replaced each year.

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