It Is Bad to Have a Negative Cash-To-Cash Cycle as the Firm

question 7

True/False

It is bad to have a negative cash-to-cash cycle as the firm receives cash several days after selling its products.

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Definitions:

Drawer

The person or entity that issues or writes a check or draft, instructing their bank to pay the stated amount to the party named on the document.

Drawee

The party, usually a bank, that is directed to pay a certain amount of money from a person's account as stated in a check or draft.

Altered Check

A cheque that has been modified in a material way (e.g., changing the amount or payee) without the authorization of the issuer.

Check Alteration

The unauthorized modification of a check's details, typically to fraudulently redirect funds or increase the amount.