Which One of the Following Will Increase the Operating Cycle

question 39

Multiple Choice

Which one of the following will increase the operating cycle?

• A)decreasing the days' sales in inventory
• B)decreasing the accounts payable turnover rate
• C)decreasing the inventory turnover rate
• D)decreasing the accounts payable period
• E)increasing the accounts receivable turnover rate

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Definitions:

Joint Costs

Costs that are incurred to produce or acquire two or more products at the same time and cannot be readily identified with the individual products.

Real Estate Taxes

Taxes charged by the government on property ownership, typically based on the property's value.

Additional Processing Costs

The costs incurred when further processing is required for a product after its initial manufacturing stage.

Direct Method

A way of preparing the cash flow statement where actual cash flow information from the company's operations is used, directly showing sources and uses of cash.