All else held constant,which one of the following statements is correct concerning the accounts payable period?
A) The accounts payable period is equal to 365/(Sales/Average accounts payable) .
B) A decrease in the accounts payable period will increase the operating cycle.
C) An increase in the accounts payable period will decrease the cash cycle.
D) A decrease in the accounts payable period will decrease the operating cycle.
E) An increase in the accounts payable turnover rate decreases the cash cycle.
Correct Answer:
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