If the average accounts receivable that a firm holds decreases without any decrease in credit sales,the operating cycle will:
A) decrease because days sales outstanding decreases.
B) have an unknown effect.
C) stay the same because of no sales change.
D) stay the same because accounts receivable are not in the operating cycle.
E) stay the same because cash collections are sooner and it will affect the cash cycle only.
Correct Answer:
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