Which One of These Statements Is Correct Concerning the Cash

question 98

Multiple Choice

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

• A)The longer the cash cycle,the more likely a firm will need external financing.
• B)Increasing the accounts payable period increases the cash cycle.
• C)A positive cash cycle is preferable to a negative cash cycle.
• D)The cash cycle can exceed the operating cycle if the payables period is equal to zero.
• E)Adopting a more liberal accounts receivable policy will tend to decrease the cash cycle.

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Definitions:

Occupiers' Liability Act

Legislation governing the responsibility of property owners or occupiers to ensure the safety of individuals on their premises.

Negligence

A lack of the care expected from a person of average caution facing similar circumstances.

Self Defence

The right to prevent harm to oneself by using reasonable force, as permitted under the law.

Battery

Unwelcome physical contact; deliberate, non-consensual physical interference to someone’s body.