Question: Which statement is true? Multiple Choice An increase in the inventory turnover rate must increase the cash cycle. Paying a supplier within the discount period

Which statement is true?
Multiple Choice
An increase in the inventory turnover rate must increase the cash cycle.
Paying a supplier within the discount period rather than waiting until the end of the normal credit period will decrease the cash cycle.
The payables period must be shorter than the receivables period.
A decrease in the accounts receivable turnover rate decreases the cash cycle.
Which statement is true? Multiple Choice An

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Q:

1. Electronics and More offers credit terms of 2/7, net 30. What is the effective annual rate on a $4,500 purchase if you forgo the discount? a - 41.83 percent b - 38.59 percent c - 44.99 percent d -...

Q:

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...

Q:

can someone help if this answers are correct? I found out that some of this answers are not correct. Thank you Quiz 2 1. One advantage to using a perpetual inventory system is that the company never...

Q:

I'm not sure if I did it right Wow are reseatching a company and find thrit it tras am inventomy pertioc of 25 Ant an -ass. waxs. 37. =5 2t 2=14 Which statement is true? A decrease in the accounts...

Q:

Hello, Can you help me to finish step 5 to step 10, and also make a cash flow statement at the end? Here I attach the instruction file and the excel file that you continue to work on. There were some...

Q:

Hi Ruchi, I need help with the attached assignment. It's due in about a week. Thanks 1) The paper should be written in APA style Research Paper format. This is the link that explains the research...

Q:

I'm doing a project for cost /benefits /risk analysis for information system. My case analysis is tesla motors and i could not find a resources of how much their website application cost, maintain...

Q:

supply chain mangment case study answer the qustions Industrial Engineering and Engineering Management Department 0405433: Supply Chain Management Spring 2021/2022 Instructor: Dr. Ridvan Aydin Date:...

Q:

Account: APC - JCN Electrical Account No. 210-2 Date Description Ref. Debit Credit Balance 7,700 CR May 31 Balance Jun Jun Jun Account: APC - Pear Technology Account No. 210-3 Date Description Ref....

Q:

Corporate Finance Course it's about Whole Foods purchase by Amazon. below are the questions need to be answered, also the documents are attached. QUESTIONS: 1.The investment thesis on AMZN has ALWAYS...

Q:

Pension data for Manu Services Inc. include the following: Discount rate 7% Expected return on plan assets 9% Actual return on plan assets 7% Service cost, 2016 239,400 Accumulated benefit obligation...

Q:

Explain the difference between Aims and Objectives of teaching chemistry?

Q:

If the market risk poeminm increases by 1 % , then the required reburn will increase for slocks that have a beta preater than 1 . 0 , bot if will decrease for stocks that have a beta less than 1 . 0...

Q:

4 5 7 8 Irish Pub Staffing Total number of servers Revenue @ $600 per server $ 2,400.00 Wages @$96.00 per server $ 384.00 Beverage Cost @ 25% $ 600.00 Revenue remaining after wages and beverage costs...