All Else the Same, Shortening the fiRm's Cash Cycle Will

question 410

Multiple Choice

All else the same, shortening the firm's cash cycle will likely____________ the firm's profitability.

• A) Increase.
• B) Decrease.
• C) Not affect.
• D) Increase (only if earnings are already positive).
• E) Decrease (provided the inventory period exceeds the accounts payable period).

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Definitions:

Misappropriation

The unauthorized, improper, or illegal use of resources, often involving funds or property entrusted to an individual's care.

Cognitive Ability

The capacity to perform mental processes such as thinking, reasoning, and problem-solving.

Verbal Skills

The ability to express ideas effectively and communicate information through spoken words.

Quantitative Skills

The ability to handle and analyze numerical data effectively.