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:

Sensory Information

Data obtained from the environment through sensory receptors, leading to perception.

Perception

The cognitive process of interpreting and organizing sensory information to understand the environment.

Gestalt Theorists

Psychologists who emphasize a holistic approach to understanding the mind, suggesting that psychological phenomena must be viewed as organized, structured wholes.

Figure and Ground

The concept of figure and ground refers to a type of perceptual grouping that is a crucial principle in visual perception, determining elements perceived as objects against a background.