Which of the Following Will Decrease the Operating Cycle

question 97

Multiple Choice

Which of the following will decrease the operating cycle?

• A)The cash cycle decreases.
• B)The days' sales in inventory decreases by three days but the average collection period increases by two days.
• C)The average payment period increases.
• D)All of these will decrease the operating cycle.

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Definitions:

Durable Power

A legal document that grants someone the authority to act on another's behalf in legal and financial matters, which continues to be effective even if the grantor becomes incapacitated.

Power of Attorney

A legal document authorizing one person to act on behalf of another in legal, financial, or personal affairs.

Scope of Employment

The range of activities or duties that an employee is expected to perform as part of their job.

Pelvic Fracture

A pelvic fracture is a break in one or more bones of the pelvis, often caused by a high-energy event, such as a car accident or fall, and can range in severity from minor to life-threatening.