Question: 6. Which statement is true? a- A decrease in the accounts receivable turnover rate decreases the cash cycle. b - Paying a supplier within the
6. Which statement is true?
a- A decrease in the accounts receivable turnover rate decreases the cash cycle.
b - Paying a supplier within the discount period rather than waiting until the end of the normal credit period will decrease the cash cycle.
c - The number of days in the cash cycle can be positive, negative, or equal to zero.
d - An increase in the inventory turnover rate must increase the cash cycle.
e - The payables period must be shorter than the receivables period.
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
