Which of the Following Will Decrease the Operating Cycle

question 97

Multiple Choice

Which of the following will decrease the operating cycle?

• A)The cash cycle decreases.
• B)The days' sales in inventory decreases by three days but the average collection period increases by two days.
• C)The average payment period increases.
• D)All of these will decrease the operating cycle.

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Definitions:

Somatostatin

A hormone that inhibits the release of growth hormone from the anterior pituitary gland and also suppresses the release of various other hormones within the body's gastrointestinal system.

Pancreas

Internal organ that produces digestive enzymes and the hormones insulin and glucagon.

Simple Goiter

An enlargement of the thyroid gland caused by a lack of iodine, not associated with thyroid dysfunction.

Iodine

A chemical element with the symbol I and atomic number 53, necessary for thyroid function and found in various foods and salts.