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:

Equilibrium Quantity

The volume of products or services on offer equals the volume sought by consumers at the equilibrium price in the market.

Expected Utility

The anticipated satisfaction or value a person expects to receive from a particular outcome, considering all possible outcomes and their probabilities.

Insurance Market

The marketplace where various types of insurance products and services are traded between insurers and those seeking insurance protection.

Probability

A gauge of the probability that an event will ensue, denoted as a figure falling between 0 and 1.