Other things held constant, which of the following would tend to reduce the cash conversion cycle?
A) Place larger orders for raw materials to take advantage of price breaks.
B) Take all cash discounts that are offered.
C) Continue to take all cash discounts that are offered and pay on the net date.
D) Offer longer payment terms to customers.
E) Carry a constant amount of receivables as sales decline.

Question

Quizplus · Accepted Answer

The Answer of Other things held constant, which of the following would tend to reduce the cash conversion cycle?
A) Place larger orders for raw materials to take advantage of price breaks.
B) Take all cash discounts that are offered.
C) Continue to take all cash discounts that are offered and pay on the net date.
D) Offer longer payment terms to customers.
E) Carry a constant amount of receivables as sales decline.

Other Things Held Constant, Which of the Following Would Tend