Which One of the Following Will Not Affect the Operating

question 263

Multiple Choice

Which one of the following will not affect the operating cycle?

• A) Decreasing the payables turnover from 7 times to 6 times.
• B) Increasing the days sales in receivables.
• C) Decreasing the inventory turnover rate.
• D) Increasing the average receivables balance.
• E) Decreasing the credit repayment times for the firm's customers.

---

Definitions:

Exchange Rate

The rate at which one currency can be exchanged for another.

Weakens

To reduce in strength, effectiveness, or intensity.

Exchange Rate

The price of one currency expressed in terms of another for conversion.

Euros

The official currency of 19 out of the 27 European Union countries, known collectively as the Eurozone.