An increase in which one of the following will decrease the cash cycle, all else equal?
A)Payables turnover
B)Days sales in inventory
C)Operating cycle
D)Inventory turnover rate
E)Trade receivables period

Question

Quizplus · Accepted Answer

An increase in the inventory turnover rate means that a company is selling and replacing its inventory more quickly. This reduces the amount of time inventory is held, which in turn decreases the cash cycle by reducing the operating cycle component of the cash cycle.

An Increase in Which One of the Following Will Decrease