Which one of the following will decrease the operating cycle?
A) Decreasing the inventory turnover rate
B) Decreasing the accounts payable period
C) Increasing the accounts receivable turnover rate
D) Increasing the accounts payable period
E) Increasing the accounts receivable period

Question

Quizplus · Accepted Answer

Increasing the accounts receivable turnover rate decreases the operating cycle by reducing the time it takes for a company to convert its receivables into cash, thus speeding up the cash flow process.

Which One of the Following Will Decrease the Operating Cycle