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:

Ratified

An agreement or decision that has been formally approved and confirmed by the required parties.

Actual Authority

The express and implied powers given by a principal to an agent to enter into contracts or take action on the principal's behalf.

Sales Force

The division of a business responsible for selling its products or services, made up of all its salesperson.

Office Manager

An individual responsible for ensuring the smooth operation of an office, including managing administrative staff and processes.