[Question text] Which one of the following situations will decrease the cash cycle as all else held constant? Select one: A. Decreasing the inventory turnover rate B. Increasing the accounts receivable turnover rate C. Decreasing the accounts payable period D. Increasing the inventory period

[Question text] Which one of the following situations will decrease the cash cycle as all else held constant? Select one: A. Decreasing the inventory turnover rate B. Increasing the accounts receivable turnover rate C. Decreasing the accounts payable period D. Increasing the inventory period

Entrepreneurial Finance

6th Edition

ISBN:9781337635653

Author:Leach

Publisher:Leach

Chapter6: Managing Cash Flow

Section6.6: Conversion Period Ratios

Problem 3CC

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[Question text] Which one of the following situations will decrease the cash cycle as all else held constant?

Select one:

A. Decreasing the inventory turnover rate

B. Increasing the accounts receivable turnover rate

C. Decreasing the accounts payable period

D. Increasing the inventory period

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