Other Factors Remaining Constant, an Increase in the Average Payment

question 2

Multiple Choice

Other factors remaining constant, an increase in the average payment period will result in ________.

• A) a decrease in the average collection period
• B) a decrease in the cash conversion cycle
• C) an increase in the cash conversion cycle
• D) an increase in the average collection period

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Definitions:

1970s

A decade from 1970 to 1979 characterized by significant political, social, and economic changes worldwide.

1980s

A decade characterized by major geopolitical changes, advancements in technology, and notable cultural developments.

Export-Import Sector

The part of an economy that is involved in exporting goods to other countries and importing goods from other countries.

United States

A country in North America consisting of 50 states, a federal district, five major self-governing territories, and various possessions.