If a Firm Only Accepts Cash for the Purchase of Its

question 211

Multiple Choice

If a firm only accepts cash for the purchase of its products, what effect would this have on the operating and cash cycles?

• A)The operating and cash cycles would be equal.
• B)The operating and cash cycles would decrease relative to offering credit to customers.
• C)Only the cash cycle would decrease relative to offering credit to customers.
• D)Only the operating cycle would increase relative to offering credit to customers.

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Definitions:

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