Assume all else held constant. If you pay your suppliers three days sooner, then:
A) your payables turnover rate will decrease.
B) you may require additional funds from other sources to fund the cash cycle.
C) the cash cycle will decrease.
D) your operating cycle will decrease.
E) the accounts receivable period will decrease.

Question

Quizplus · Accepted Answer

Paying suppliers sooner reduces the time you hold onto cash, potentially increasing the need for additional funds to maintain operations during the cash cycle.

Assume All Else Held Constant