$1$points

Item $5$

Which statement is true?

Multiple Choice

An increase in the inventory turnover rate must increase the cash cycle.

The number of days in the cash cycle can be positive, negative, or equal to zero.

The payables period must be shorter than the receivables period.

Paying a supplier within the discount period rather than waiting until the end of the normal credit period will decrease the cash cycle.

A decrease in the accounts receivable turnover rate decreases the cash cycle.