The Jennings Company recently hired a new chief ﬁnancial oﬃcer. One of the ﬁrst changes she made was to delay the payment of all bills by ten days. The net effect of this action is to decrease
The:

Question

Quizplus · Accepted Answer

Delaying the payment of bills increases the accounts payable period, which in turn decreases the cash cycle, as the cash cycle is calculated as the inventory period plus the accounts receivable period minus the accounts payable period.

The Jennings Company Recently Hired a New Chief ﬁNancial Oﬃcer