Which of the Following Would Lengthen the Operating Cycle

question 23

Multiple Choice

Which of the following would lengthen the operating cycle?

• A)Faster collection of accounts receivables.
• B)Selling inventory in a shorter period of time.
• C)Increasing the number of customers who pay cash
• D)Relaxing credit terms and allowing customers more time to pay.

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Definitions:

Subgoals

Smaller, achievable objectives set as steps toward reaching a larger goal, facilitating problem-solving and task completion.

Availability Heuristic

A mental shortcut that relies on immediate examples that come to mind when evaluating a specific topic, concept, method, or decision.

Representativeness Heuristic

The representativeness heuristic is a cognitive bias where people judge the probability of an event or the likelihood of an object belonging to a category by how much it resembles a typical case.

Heuristics

Cognitive shortcuts or rules of thumb that simplify decision making, often used unconsciously.