If a Firm Only Accepts Cash for the Purchase of Its

question 211

Multiple Choice

If a firm only accepts cash for the purchase of its products, what effect would this have on the operating and cash cycles?

• A)The operating and cash cycles would be equal.
• B)The operating and cash cycles would decrease relative to offering credit to customers.
• C)Only the cash cycle would decrease relative to offering credit to customers.
• D)Only the operating cycle would increase relative to offering credit to customers.

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Definitions:

Sampling Distribution

The probability distribution of a given statistic based on a random sample.

Histogram

A graphical representation of the distribution of numerical data, where the data is grouped into ranges (bins) and depicted as bars.

Coin Tosses

The act of flipping a coin to generate random outcomes of heads or tails, often used for decision-making.

Normal Model

A statistical model characterized by a symmetrical bell-shaped curve, describing how continuous data values are distributed around the mean.