Which of the Following Will Decrease the Operating Cycle

question 135

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 the options will decrease the operating cycle.

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Definitions:

Inclusive Range

The difference between the highest and lowest values in a data set, considering all values within the set, including the extremes.

Exclusive Range

Refers to a range in statistics that does not include the specified upper and lower bounds in the set of possible values.

Unbiased Standard Deviation

A measure of the dispersion or variability of a data set that is corrected for bias, accurately reflecting the spread of the data.

Square Root

A function in mathematics that generates the initial number upon being squared.