All else constant,which one of the following will decrease the cash cycle?

Question

Quizplus · Accepted Answer

Decreasing the credit period granted to a customer means that the company is receiving cash from customers earlier, which will decrease the accounts receivable period. This, in turn, will decrease the cash cycle. Therefore, A is the best choice as it directly affects the time it takes for the company to receive cash from customers. The other options, including decreasing the inventory turnover rate, decreasing the accounts payable period, decreasing the accounts receivable turnover rate, and increasing the receivables period will all increase the cash cycle.

All Else Constant,which One of the Following Will Decrease the Cash