Which One of the Following Statements Is True,all Else Constant

question 3

Multiple Choice

Which one of the following statements is true,all else constant?

• A)A decrease in the accounts receivable turnover rate decreases the cash cycle.
• B)Paying a supplier within the discount period, rather than waiting until the end of the normal credit period, will decrease the cash cycle.
• C)The cash cycle can never be negative.
• D)An increase in the inventory turnover rate will decrease the cash cycle.
• E)The payables period must be shorter than the receivables period.

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Definitions:

Adults

Individuals who have reached the age of majority, legally recognized as capable of entering into binding contracts and being responsible for their actions.

Illegal Contract

A contract that is void because it involves the performance of an unlawful act.

Prostitution

A practice of engaging in sexual activities in exchange for payment or other benefits.

Cocaine

A powerful stimulant drug derived from the leaves of the coca plant, classified as a narcotic.