Which One of the Following Will Decrease the Operating Cycle

question 75

Multiple Choice

Which one of the following will decrease the operating cycle?

• A) Paying accounts payable faster
• B) Discontinuing the discount given for early payment of an accounts receivable
• C) Decreasing the inventory turnover rate
• D) Collecting accounts receivable faster
• E) Increasing the accounts payable turnover rate

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Definitions:

Expected Profit

The forecasted amount of profit based on potential outcomes and their probabilities.

Price

The financial sum anticipated, needed, or handed over as payment for an item.

Typical Day

A representation of a common or routine day in a specific context, such as a job or activity.

Sales Figures

Data that represent the number of products or services sold within a specific time frame.