Which One of the Following Statements Is Correct Concerning the Cash

question 109

Multiple Choice

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

• A) The longer the cash cycle, the more likely a company will need external financing.
• B) Increasing the accounts payable period increases the cash cycle.
• C) Accepting a supplier's discount for early payment decreases the cash cycle.
• D) The cash cycle can exceed the operating cycle if the payables period is equal to zero.
• E) Offering early payment discounts to customers will tend to increase the cash cycle.

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Definitions:

Marketing Strategy

A comprehensive plan designed to achieve the marketing objectives of an organization by targeting specific markets and tailoring the marketing mix to appeal to those audiences effectively.

Project Deadline

The specific date by which a project or task needs to be completed, setting a target for completion.

Research Assistant

An individual who supports academic or professional research tasks, including data collection, analysis, and reporting.

Funding Agency

An organization that provides financial support for individuals, organizations, or projects typically through grants or loans.