Which One of the Following Statements Is Correct Concerning the Cash

question 68

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) Adopting a more liberal accounts receivable policy will tend to decrease the cash cyclE.

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Definitions:

Cognitive-Mediational Theories

Cognitive-mediational theories suggest that cognitive processes—like thoughts and interpretations of events—mediate between the stimulus and the emotional or behavioral response.

Appraisal

The evaluation of the significance of an event or situation for an individual's well-being, which plays a role in determining the emotional response.

Intrinsic Motivation

Motivation driven by an interest or enjoyment in the task itself, rather than relying on external pressures or rewards.

External Rewards

Benefits provided by an external source, often used as motivation in behavior reinforcement, that are not inherently related to the activity being performed.