Which one of the following will shorten both the operating and the cash cycles?
A) A decrease in the length of time a firm takes to pay its suppliers.
B) A change in the collection policy from net 30 to net 45.
C) A decrease between the times a supplier is paid for a product and the time when payment is collected for that product.
D) An increase in the accounts payable turnover rate.
E) An increase in the number of times inventory is sold and replaced each year.
Correct Answer:
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