An Increase in the Accounts Receivable Period Will Do Which

question 37

Multiple Choice

An increase in the accounts receivable period will do which one of the following?

• A)Lengthen the accounts payable period
• B)Shorten the inventory period
• C)Shorten the operating cycle
• D)Lengthen the cash cycle
• E)Shorten the accounts payable period

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Definitions:

Statutory Obligation

A requirement imposed by a law or a statute.

Pre-Emptive Right Provision

A clause usually found in a company's charter or bylaws that gives existing shareholders the first opportunity to buy new shares before they are offered to the public.

Authorized Capital

The maximum amount of share capital that a company is authorized by its corporate charter to issue to shareholders.

Treasury

A government department responsible for managing the financial resources, including revenue collection and expenditure.