Which one of the following will decrease the operating cycle?
A) Decreasing the days sales in inventory
B) Decreasing the days in accounts payable
C) Decreasing the cash cycle by increasing the accounts payable period
D) Decreasing the accounts receivable turnover rate
E) Decreasing the speed at which inventory is sold

Question

Quizplus · Accepted Answer

Decreasing the days sales in inventory will decrease the time it takes to sell inventory, thereby decreasing the operating cycle.

Which One of the Following Will Decrease the Operating Cycle