The cash conversion cycle can be reduced by lengthening the accounts payable period.

Name: The cash conversion cycle can be reduced by lengthening the accounts payable period.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Lengthening the accounts payable period means delaying payment to suppliers, which can increase the company's available cash and reduce the cash conversion cycle. However, this strategy may negatively affect relationships with suppliers if they demand timely payment.

The Cash Conversion Cycle Can Be Reduced by Lengthening the Accounts