If a firm decided to speed up its collection from its customers by reducing the receivables period and kept the inventory period and payable period the same, then:

Question

Quizplus · Accepted Answer

By reducing the receivables period, the firm will collect cash from its customers more quickly, which will decrease the cash conversion cycle. However, the investment in working capital may not necessarily be minimized as the inventory period and payable period remain the same.

If a Firm Decided to Speed Up Its Collection from Its