Changing credit terms to require payment in 30 days rather than 20 will likely increase the ﬁrm's
cash cycle.

Name: Changing credit terms to require payment in 30 days rather than 20 will likely increase the ﬁrm's cash cycle.
Brand: Quizplus
Rating: 4.8 (52 reviews)

Question

Quizplus · Accepted Answer

Extending the credit terms from 20 days to 30 days means that the firm will receive payment later, thus increasing the time it takes for cash to flow back into the company, and therefore increasing the cash cycle.

Changing Credit Terms to Require Payment in 30 Days Rather