Which of the Following Will Increase the Operating Cycle

question 76

Multiple Choice

Which of the following will increase the operating cycle?
I.increasing the inventory turnover rate
II.increasing the payables period
III.decreasing the receivable turnover rate
IV.decreasing the inventory level

• A)I only
• B)III only
• C)II and IV only
• D)I and IV only
• E)II and III only

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Definitions:

Net Loss

Occurs when a company's total expenses exceed its total revenues during a specific period, indicating negative profitability.

Revenue Accounts

Accounts that track the income earned from the sale of products or services.

Capital

Capital refers to the financial resources that businesses use to fund their operations and grow, including equity, debt, and retained earnings.

Assets

Resources owned by a company that have economic value and are expected to provide future benefits.