Other Things Held Constant,which of the Following Would Tend to Reduce

question 108

Multiple Choice

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

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

---

Definitions:

Subject-Matter Jurisdiction

The power of a court to adjudicate cases of a certain nature or those pertaining to a specified subject area.

Final Judgment

A court's last decision or ruling in a case, which resolves the dispute and is enforceable by law.

Nature and Quality

A term that refers to the essential characteristics and standards of goods or services.

Commercial Activity

Any type of business operation or venture that involves the exchange of goods or services for profit.