Other Things Held Constant,which of the Following Would Tend to Reduce

question 114

Multiple Choice

Other things held constant,which of the following would tend to reduce the cash conversion cycle?

• A) Place larger orders for raw materials to take advantage of price breaks.
• B) Take all discounts that are offered.
• C) Continue to take all discounts that are offered and pay on the net date.
• D) Offer longer payment terms to customers.
• E) Carry a constant amount of receivables as sales decline.

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Definitions:

Illustration

A visual representation or example that helps explain or clarify something.

Frequency Distribution

A summary of data showing the number (frequency) of observations falling within specified intervals.

Cumulative Frequency

The sum of the frequencies of all values at or below a certain point in a dataset or frequency distribution.

Bar Chart

A visual representation of data where each category is represented by a bar, whose length reflects the category's value.