$1$points

Item $4$

Which statement is true?

Multiple Choice

A firm would prefer a negative cash cycle over a positive cash cycle.

Decreasing the inventory period will automatically decrease the payables period.

Both the operating cycle and the cash cycle must be positive values.

The longer the cash cycle, the more cash a firm typically has available to invest.

If a firm decreases its inventory period, its accounts receivable period will also decrease.