Which One of the Following Statements Is True,all Else Constant

question 40

Multiple Choice

Which one of the following statements is true,all else constant?

• A)An increase in the inventory turnover rate will decrease the cash cycle.
• B)Paying a supplier within the discount period,rather than waiting until the end of the normal credit period,decreases the cash cycle.
• C)The cash cycle can never be negative.
• D)A decrease in the accounts receivable turnover rate decreases the cash cycle.
• E)The payables period must be shorter than the receivables period.

---

Definitions:

Material Interference

In psychology, the effect that the presence of one set of learning material has on the ability to recall or learn another set.

Childhood Amnesia

The phenomenon where early childhood memories, typically before the age of 3 to 4, are not retained into adulthood.

Recall Events

The process of retrieving information about past events or experiences from one's memory.

Age Two

A stage in human development that typically refers to a child who is two years old, where significant milestones in physical, cognitive, and language development occur.