Assume All Else Held Constant

question 32

Multiple Choice

Assume all else held constant. If you pay your suppliers three days sooner, then:

• A) your payables turnover rate will decrease.
• B) you may require additional funds from other sources to fund the cash cycle.
• C) the cash cycle will decrease.
• D) your operating cycle will decrease.
• E) the accounts receivable period will decrease.