If a firm decided to speed up its collection from its customers by reducing the receivables period and kept the inventory period and payable period the same,then:

Question

Quizplus · Accepted Answer

Reducing the receivables period means that the firm will receive cash from the customers sooner, which will decrease the cash conversion cycle (the length of time it takes to convert inventory and receivables into cash). Keeping the inventory and payable periods the same will not have a significant impact on the cash conversion cycle.

If a Firm Decided to Speed Up Its Collection from Its