Other Things Held Constant, Which of the Following Alternatives Would

question 66

Multiple Choice

Other things held constant, which of the following alternatives would increase a company's cash flow for the current year?

• A) Increase the number of years over which fixed assets are depreciated for tax purposes.
• B) Pay down the accounts payables.
• C) Reduce the days' sales outstanding (DSO) without affecting sales or operating costs.
• D) Pay workers more frequently to decrease the accrued wages balance.
• E) Reduce the inventory turnover ratio without affecting sales or operating costs.

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Definitions:

Price Ceiling

A legally established maximum price that can be charged for a good or service.

Minimum Wage Law

Legislation that sets the lowest hourly rate that can be paid to workers, aimed at ensuring a minimum standard of living for employees.

Demand Schedule

A diagram indicating the volume of a good or service buyers intend and can afford to buy across a range of prices.

Demand Increased

A situation where consumers are willing and able to purchase more of a good or service at any given price level, often leading to higher prices.