A Firm Wants to Reduce Its Cash Cycle

question 36

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 these are actions that will reduce its cash cycle.

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Definitions:

Fairness

The quality of making judgments that are free from discrimination or bias, and uphold the principles of equity and justice.

Consistently

The quality of acting or performing in a similar manner over time, maintaining uniformity and reliability.

Career

The pursuit of a lifelong ambition or the general course of progression towards lifelong goals, often related to professional growth and development.

Calling

A deep sense of purpose or a strong inner urge toward a particular course of action, often related to career or vocation.