Which One of the Following Statements Is Correct Concerning the Cash

question 204

Multiple Choice

Which one of the following statements is correct concerning the cash cycle?

• A) The longer the cash cycle, the more likely a firm will need external financing.
• B) Increasing the accounts payable period, increases the cash cycle.
• C) A positive cash cycle is preferable to a negative cash cycle.
• D) The cash cycle can exceed the operating cycle if the payables period is equal to zero.
• E) Adopting a more liberal accounts receivable policy will tend to decrease the cash cycle.

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Definitions:

Kubler-Ross Model

A theory introduced by Elisabeth Kübler-Ross outlining five stages of grief—denial, anger, bargaining, depression, and acceptance—originally conceived to understand the coping process of terminally ill patients.

Westberg Model

A grief recovery model outlining ten stages that people commonly go through after experiencing a loss.

Grief

The intense sorrow experienced after the loss of a loved one or something significant.

Safety Planning

A personalized, practical plan that includes ways to remain safe while in a relationship, planning to leave, or after leaving, often used in the context of domestic violence.