The operating cycle will increase with all of the following changes EXCEPT:
A)the cost of goods sold increases.
B)the level of accounts receivable increases.
C)the level of inventory increases.
D)All of the options will increase the operating cycle.

Question

Quizplus · Accepted Answer

The operating cycle will not increase if the cost of goods sold increases, as it does not directly affect the time taken to convert inventory into cash.

The Operating Cycle Will Increase with All of the Following