E$)$ Decreasing the accounts payable turnover rate

Which one of the following will increase the operating cycle?

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FIN $215$ Take Home Exam $5$

A$)$ Decreasing the accounts payable period

B$)$ Increasing the accounts payable turnover rate

C$)$ Increasing the cash cycle

D$)$ Decreasing the accounts receivable turnover rate

E$)$ Decreasing the inventory period

Which one of the following actions will decrease the operating cycle?

A$)$ Increasing inventory

B$)$ Paying suppliers faster

C$)$ Paying for more inventory with cash rather than credit

D$)$ Granting customers more time to pay for their credit purchases

E$)$ Lessening the production time needed to manufacture a good for sale

The operating cycle is equal to the:

A$)$ inventory period plus the accounts payable period.

B$)$ accounts receivable period plus the cash cycle.

C$)$ inventory period minus the accounts payable period plus the accounts receivable period.

D$)$ accounts receivable period plus the inventory period.

E$)$ inventory period plus the cash cycle.

Which one of the following can occur if the operating cycle decreases while both the accounts receivable and the accounts payable periods remain constant?

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FIN $215$ Take Home Exam $5$

A$)$ Inventory period remains constant

B$)$ Cash cycle increases

C$)$ Inventory turnover rate increases

D$)$ Accounts receivable turnover rate increases

E$)$ Cash cycle remains constant

The operating cycle:

A$)$ illustrates the sources and uses of cash.

B$)$ is equal to the cash cycle plus the accounts receivable period.

C$)$ begins when a product is sold to a customer.

D$)$ is based on a $360-$day year.

E$)$ describes how a product moves through the current asset accounts.