Evergreen Brothers Hardware offers credit to contractors. As a reward for years of loyalty, the brothers have decided to extend the length of the credit period for their top ten customers. This extension will _____ the accounts receivable period, _____ the operating cycle, and _____ the cash cycle.

Question

Quizplus · Accepted Answer

Extending the credit period increases the accounts receivable period, which in turn increases both the operating cycle and the cash cycle.

Evergreen Brothers Hardware Offers Credit to Contractors