All Else Constant,which One of the Following Will Decrease the Cash

question 64

Multiple Choice

All else constant,which one of the following will decrease the cash cycle?

• A)Decreasing the credit period granted to a customer
• B)Decreasing the inventory turnover rate
• C)Decreasing the accounts payable period
• D)Decreasing the accounts receivable turnover rate
• E)Increasing the receivables period

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Definitions:

Liability

A legal obligation or responsibility for any debts or damages incurred.

Participate

To take part or become involved in a particular activity, event, or situation.

Partnership Business

A business owned and operated by two or more individuals who share its profits and liabilities.

Duty Of Care

The duty of all persons, as established by tort law, to exercise a reasonable amount of care in their dealings with others. Failure to exercise due care, which is normally determined by the “reasonable person standard,” constitutes the tort of negligence.