The Longer Its Customers Normally Hold Inventory, the Longer the Credit

question 99

True/False

The longer its customers normally hold inventory, the longer the credit period supplier firms normally offer.Still, suppliers have some flexibility in the credit terms they offer.If a supplier lengthens the credit period offered, this will shorten the customer's cash conversion cycle but lengthen the supplier firm's own CCC.

---

Definitions:

Activate Glucose

The process of converting glucose into a form that can be used by cells for energy or stored for future use.

NAD+

Nicotinamide adenine dinucleotide, a coenzyme involved in redox reactions, acting as an electron carrier.

Glycolysis

The metabolic pathway that converts glucose into pyruvate, generating ATP and NADH, occurring in the cytoplasm of cells.

Net Gain

The difference between the total earned and the total spent, resulting in either a profit or a deficit.