Which One of the Following Statements Is Correct Concerning the Cash

question 194

Multiple Choice

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

• A) The longer the cash cycle, the more likely a firm will need external financing.
• B) Increasing the accounts payable period, increases the cash cycle.
• C) A positive cash cycle is preferable to a negative cash cycle.
• D) The cash cycle can exceed the operating cycle if the payables period is equal to zero.
• E) Adopting a more liberal accounts receivable policy will tend to decrease the cash cycle.

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Definitions:

Well Adjusted

Describes an individual who is psychologically balanced, able to cope effectively with life's stresses, and engage in successful social interactions.

Competent

Having the necessary ability, knowledge, or skill to perform a task successfully.

Conceited

Holding an excessively favorable opinion of one's abilities, appearance, or worth.

Social Schema

Frameworks that people use to organize and understand social information and interactions based on past experiences.