Which One of These Statements Concerning the Cash Cycle Is

question 33

Multiple Choice

Which one of these statements concerning the cash cycle is correct?

• A)The cash cycle is equal to the operating cycle minus the inventory period.
• B)A negative cash cycle is actually preferable to a positive cash cycle.
• C)Granting credit to slower paying customers tends to decrease the cash cycle.
• D)The cash cycle plus the accounts receivable period is equal to the operating cycle.
• E)The most desirable cash cycle is the one that equals zero days.

Determine the feasibility of applying the Normal model under various conditions in real-world scenarios.

Analyze the effects of sample size on the accuracy of a Normal model applied to skewed populations.

Calculate probabilities in the context of the Normal distribution model and understand the impact of changing standard deviations.

Grasp the concept of the sampling distribution model for different population distributions.

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Definitions:

Sarbanes-Oxley Act

U.S. law enacted in 2002 aimed at enhancing corporate governance and strengthening regulations on accounting and auditing to protect investors from fraudulent financial reporting.

Values

Positive abstractions that capture our sense of what is good and desirable.

Whistle-Blowers

Individuals who expose illegal or unethical activities within an organization to the public or to those in power.

Sarbanes-Oxley Act

A federal law enacted in 2002 to improve corporate governance, prevent fraud, and enhance the accuracy and reliability of financial reporting by corporations.