Which One of the Following Will Decrease the Operating Cycle

question 101

Multiple Choice

Which one of the following will decrease the operating cycle?

• A)paying trade payables faster
• B)discontinuing the discount given for early payment of a trade receivables
• C)decreasing the inventory turnover rate
• D)collecting trade receivables faster
• E)increasing the trade payables turnover rate

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Definitions:

Nonprofit Organization

An organization that operates for the public or social benefit, rather than for the profit of private owners or shareholders, and uses surplus revenues to achieve its goals.

Internal Capacity

The collective resources, skills, and competencies available within an organization that enable it to perform effectively.

External Capacity

The abilities and resources available to an organization from external sources that can be used to achieve its goals and objectives.

Strategic Issues

Key factors or challenges that could significantly impact an organization's ability to achieve its goals, requiring management's attention and strategic planning.