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:

Water Retention

The accumulation of excess fluids in the body tissues, often leading to swelling.

Nonparents

Individuals who do not have children, either by choice or circumstance.

Child-Free

Individuals or couples who choose not to have children.

Infertile

The inability to conceive a child after a year or more of regular sexual intercourse without the use of birth control.