All else the same, shortening your firm's cash cycle will _______________.

Name: All else the same, shortening your firm's cash cycle will _______________.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Shortening the cash cycle increases the efficiency with which a firm uses its assets, thereby potentially increasing its return on assets. This is because the firm is able to recover its cash more quickly from operations, reducing the need for external financing and allowing for more rapid reinvestment or payment of liabilities.

All Else the Same, Shortening Your Firm's Cash Cycle Will