If the Average Accounts Receivable That a Firm Holds Decreases

question 63

Multiple Choice

If the average accounts receivable that a firm holds decreases without any decrease in credit sales,the operating cycle will:

• A)remain constant because sales remained constant.
• B)remain constant because the change will only affect the cash cycle.
• C)decrease because the days' sales outstanding will decrease.
• D)increase because the accounts receivable turnover will decrease.
• E)decrease because the accounts receivable turnover will decrease.

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