Which One of the Following Statements Concerning the Cash Cycle

question 39

Multiple Choice

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

• A)The cash cycle is equal to the operating cycle minus the inventory period.
• B)The most desirable cash cycle is the one that has a small positive value.
• C)Granting credit to slower paying customers tends to decrease the cash cycle.
• D)The cash cycle plus the accounts receivable period is equal to the operating cycle.
• E)A negative cash cycle is actually preferable to a positive cash cycle.

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