If You Pay Your Suppliers Five Days Sooner,then

question 27

Multiple Choice

If you pay your suppliers five days sooner,then:

• A)your payables turnover rate will decrease.
• B)you may require additional funds from other sources to fund the cash cycle.
• C)the cash cycle will decrease.
• D)your operating cycle will increase.
• E)the accounts receivable period will decrease.

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Definitions:

Mineral Deposit

A naturally occurring accumulation of minerals that can be extracted for economic benefit.

Journalize

The act of recording transactions in an accounting journal, noting the debit and credit aspects of each transaction.

Straight-Line Method

A depreciation method that allocates an asset's cost evenly across its useful life.

Annual Depreciation

Definition: The portion of the cost of a fixed asset that is expensed on an annual basis through the process of depreciation.