Which of the Following Alternatives Could Potentially Result in a Net

question 97

Multiple Choice

Which of the following alternatives could potentially result in a net increase in a company's free cash flow for the current year?

• A) Reducing the days-sales-outstanding ratio.
• B) Increasing the number of years over which fixed assets are depreciated.
• C) Decreasing the accounts payable balance.
• D) All of the answers above are correct.
• E) Answers a and b are correct.

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Definitions:

Manufacturing Situations

Scenarios or contexts within which manufacturing processes take place, often influenced by factors such as technology, labor, and market demand.

Market Forces

The economic factors affecting the price, demand, and availability of products and services in a free market, such as supply and demand, competition, and consumer preferences.

Cost-Based Pricing

A pricing strategy where the selling price is determined by adding a specific markup to a product's cost of production.

Product Costs

The total expenses incurred in creating a product, including materials, labor, and overhead costs.