A fiRm Currently Has a 43 Day Cash Cycle

question 237

Multiple Choice

A firm currently has a 43 day cash cycle. Assume that the firm changes its operations such that it increases its receivables period by 2 days, decreases its inventory period by 1 day and increases its
Payables period by 3 days. What will the length of the cash cycle be after these changes?

• A) 38 days
• B) 39 days
• C) 41 days
• D) 43 days
• E) 45 days

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Definitions:

Person-Job Matching

The process of aligning the skills, experiences, and attributes of individuals with the requirements and characteristics of a job to ensure optimal performance and job satisfaction.

Competencies

The skills, knowledge, and abilities that are significant for successful performance in a job.

Goal-Directed Behaviors

Actions taken with the intention of achieving predetermined objectives or outcomes.

Internal Force

Influences within an organization or individual that affect its operations, behaviors, and changes, such as company culture or personal motivation.