Which One of the Following Statements Is Correct

question 68

Multiple Choice

Which one of the following statements is correct?

• A)If a firm decreases its inventory period, its accounts receivable period will also decrease.
• B)The longer the cash cycle, the more cash a firm typically has available to invest.
• C)A firm would prefer a negative cash cycle over a positive cash cycle.
• D)Decreasing the inventory period will also decrease the payables period.
• E)Both the operating cycle and the cash cycle must be positive values.

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