Which one of the following statements concerning the cash cycle is correct?
A) The cash cycle is equal to the operating cycle minus the inventory period.
B) The most desirable cash cycle is the one that has a small positive value.
C) Granting credit to slower paying customers tends to decrease the cash cycle.
D) The cash cycle plus the accounts receivable period is equal to the operating cycle.
E) A negative cash cycle is actually preferable to a positive cash cycle.
Correct Answer:
Verified
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