Other Things Held Constant, Which of the Following Alternatives Would

question 66

Multiple Choice

Other things held constant, which of the following alternatives would increase a company's cash flow for the current year?

• A) Increase the number of years over which fixed assets are depreciated for tax purposes.
• B) Pay down the accounts payables.
• C) Reduce the days' sales outstanding (DSO) without affecting sales or operating costs.
• D) Pay workers more frequently to decrease the accrued wages balance.
• E) Reduce the inventory turnover ratio without affecting sales or operating costs.