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Which of the Following Could Be the Cause of a Lengthening

Question 3

Multiple Choice

Which of the following could be the cause of a lengthening cash cycle?


A) Increasing the inventory turnover
B) Issuing credit to less credit-worthy customers than in previous periods
C) Increasing the accounts payable period
D) Extending the time period before paying a supplier for a credit purchase
E) Offering customers cash discounts for prompt payment

Correct Answer:

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