Which One of the Following Statements Is Correct Concerning the Cash

question 108

Multiple Choice

Which one of the following statements is correct concerning the cash cycle?

• A)A positive cash cycle is preferable to a negative cash cycle.
• B)Increasing the accounts payable period increases the cash cycle.
• C)The longer the cash cycle, the more likely a firm will need external financing.
• 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:

TRC

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Overarching Goal

The primary, broad objective that guides decision-making and strategy in various contexts, often encompassing several smaller objectives or efforts.

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The process of returning respect, self-worth, and honor to someone who has been devalued or humiliated.