Longer Its Customers Normally Hold Inventory, the Longer the Credit

question 46

True/False

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.

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Definitions:

Descending Colon

Part of the colon extending from the left colonic flexure to the sigmoid colon.

Ascending Colon

The first main part of the large intestine, which absorbs water and salts as it carries waste upward from the cecum toward the transverse colon.

Gallbladder

A tiny organ situated beneath the liver, responsible for storing and concentrating bile, which is a digestive liquid created by the liver.

Bile

Fluid secreted from the liver into the duodenum; consists of bile salts, bile pigments, bicarbonate ions, cholesterol, fats, fat-soluble hormones, and lecithin.