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.

Identify and classify accounts as assets, liabilities, or stockholders' equity.

Understand transactions that affect stockholders' equity and their impact.

Prepare and interpret an income statement.

Understand the accounting equation and how specific transactions affect it.

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Definitions:

Spreadsheet-like

Resembling features of a spreadsheet application, such as cells, formulas, and tables for organizing data.

Data

Information that has been translated into a form that is efficient for movement or processing.

Left Outer

Refers to a type of SQL join that returns all rows from the left table and the matched rows from the right table, with nulls where there is no match.

One-to-Many Relationship

A type of database relationship where a record in one table can be associated with one or more records in another table.