Which One of the Following Statements Is Correct Concerning the Cash

question 20

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)Offering early payment discounts to customers will tend to increase the cash cycl

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Definitions:

Enthusiasm

Intense and eager enjoyment, interest, or approval.

Internal Conflict

A psychological struggle within the mind of an individual, often involving differing emotions, desires, or beliefs.

Forming Stage

The initial phase in group development where members meet and start to form relationships, characterized by orientation and acquaintance.

Group Process

The patterns of interaction, behavior, and dynamics that occur within a group setting.