Which One of the Following Statements Concerning the Cash Cycle

question 24

Multiple Choice

Which one of the following statements concerning the cash cycle is correct?

• A)The cash cycle is equal to the operating cycle minus the inventory period.
• B)A negative cash cycle is actually preferable to a positive cash cycle.
• C)Granting credit to slower paying customers tends to decrease the cash cycle.
• D)The cash cycle plus the trade receivables period is equal to the operating cycle.
• E)The most desirable cash cycle is the one that equals zero days.

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Definitions:

Deltoid Group

A muscle group responsible for lifting the arm and giving the shoulder its range of motion.

Trapezius Group

A major muscle group in the back that extends from the neck to the middle of the spine and out to the shoulder, involved in moving, rotating, and stabilizing the scapula.

Incision

A cut made through the skin and tissue during surgery, usually made with a scalpel or other sharp instrument.

Ventral Surface

The front or abdominal side of the body of an animal or organ.