Which One of the Following Will Decrease the Operating Cycle

question 18

Multiple Choice

Which one of the following will decrease the operating cycle?

• A)Decreasing the speed at which inventory is sold
• B)Decreasing the accounts receivable turnover rate
• C)Decreasing the cash cycle by increasing the accounts payable period
• D)Decreasing the accounts payable period
• E)Decreasing the days' sales in inventory

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Definitions:

Making Assumptions

The process of establishing certain premises or conditions as given for the purpose of analysis or decision-making.

Economists

professionals who study the production, distribution, and consumption of goods and services, and analyze economic issues and trends.

Mortgage-backed Security

A type of asset-backed security that is secured by a collection of mortgages, allowing investors to gain exposure to the home loans market without directly lending to borrowers.

Federal Reserve

The central banking system of the United States, responsible for implementing the country’s monetary policy and regulating its financial institutions.