Which Statement Concerning the Operating Cash Cycle Is True

question 23

Multiple Choice

Which statement concerning the operating cash cycle is true?

• A)It is possible to have a negative operating cash cycle.
• B)The longer the operating cash cycle, the greater the amount of working capital required.
• C)Reducing the time period for which inventory is held shortens the operating cash cycle.
• D)All of the statements are true.

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Definitions:

Molecular Formula

A notation that indicates the type and number of atoms in a molecule, but not the arrangement of the atoms.

Compound

A substance formed when two or more chemical elements are chemically bonded together.

Organic Compound

A compound primarily made of carbon atoms bonded with other elements like hydrogen, oxygen, and nitrogen.

Carbon

A chemical element with symbol C, known for its ability to form a vast number of compounds, more than any other element, due to its four valence electrons.