Question: Which statement is true? Both the operating cycle and the cash cycle must be positive values. Decreasing the inventory period will automatically decrease the payables
Which statement is true?
Both the operating cycle and the cash cycle must be positive values.
Decreasing the inventory period will automatically decrease the payables period.
A firm would prefer a negative cash cycle over a positive cash cycle.
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.
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