Other Things Held Constant, Which of the Following Would Tend

question 74

Multiple Choice

Other things held constant, which of the following would tend to reduce the cash conversion cycle?

• A) Place larger orders for raw materials to take advantage of price breaks.
• B) Take all cash discounts that are offered.
• C) Continue to take all cash discounts that are offered and pay on the net date.
• D) Offer longer payment terms to customers.
• E) Carry a constant amount of receivables as sales decline.

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Definitions:

European Union

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Discussion

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