Which Statement Is True

question 65

Multiple Choice

Which statement is true?

• A)A decrease in the accounts receivable turnover rate decreases the cash cycle.
• B)Paying a supplier within the discount period rather than waiting until the end of the normal credit period will decrease the cash cycle.
• C)The number of days in the cash cycle can be positive, negative, or equal to zero.
• D)An increase in the inventory turnover rate must increase the cash cycle.
• E)The payables period must be shorter than the receivables period.

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Definitions:

Conservative

A political and social ideology that emphasizes the value of traditional institutions and practices, resistance to rapid change, and cautiousness in political and social reform.

Liberal

Pertaining to a political and social philosophy that emphasizes individual rights, freedom of expression, and a preference for governmental intervention in social and economic matters.

Openness

A personality trait characterized by an appreciation for art, emotion, adventure, and unusual ideas; imaginative and curious.

Fluctuates

Describes variations or changes in state or level over time, often in an unpredictable manner.