Which One of the Following Will Not Affect the Operating

question 49

Multiple Choice

Which one of the following will not affect the operating cycle?

• A) decreasing the payables turnover from 7 times to 6 times
• B) increasing the days sales in receivables
• C) decreasing the inventory turnover rate
• D) increasing the average receivables balance
• E) decreasing the credit repayment times for the firm's customers

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Definitions:

Marginal Utility

The additional satisfaction or benefit (utility) a consumer gains from consuming one more unit of a good or service.

Supply and Demand

The fundamental economic model describing the balance between the quantity of goods available and the desire of buyers for it.

Marginal Utility

The additional satisfaction a consumer gains from consuming one more unit of a good or service.

Opportunity Cost

The cost of foregoing the next best alternative when making a decision or choice.