A Firm Wants to Reduce Its Cash Cycle

question 31

Multiple Choice

A firm wants to reduce its cash cycle. Which of the following actions will reduce its cash cycle?

• A)The firm reduces its DSO.
• B)The firm increases its inventory.
• C)The firm reduces its accounts payable.
• D)All of the options are actions that will reduce its cash cycle.

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Definitions:

Compassion

A deep awareness of and sympathy for another's suffering, coupled with the desire to alleviate that suffering.

Animals

Multicellular, eukaryotic organisms of the kingdom Animalia that can move voluntarily and consume organic material.

Vegans

Individuals who refrain from using animal products and byproducts in their diet and daily life, often for ethical, health, or environmental reasons.

Dairy Products

Edible products made from the milk of mammals, such as cheese, yogurt, and butter.