Which of the Following Will Increase the Operating Cycle

question 43

Multiple Choice

Which of the following will increase the operating cycle?

• A)The cash cycle decreases by one day but the average payment period increases by two and a half days.
• B)The days' sales in inventory decreases by one day but the average collection period increases by two days.
• C)COGS stays the same but inventory increases.
• D)All of these will increase the operating cycle.

---

Definitions:

PCI Compliance

The adherence to a set of security standards designed to protect credit card information during and after a financial transaction.

Receiving Clerk

A position responsible for accepting, checking, and managing the goods or inventory delivered to a business or organization.

Packing List

A document that enumerates all the items being shipped, typically accompanying goods sent by freight or shipment.

Reinforcement Learning

A type of machine learning where an agent learns to make decisions by performing certain actions and receiving rewards or penalties.