An increase in which one of the following will decrease the cash cycle,all else equal?

Question

Quizplus · Accepted Answer

Inventory turnover rate is the number of times that a company sells and replaces its inventory during a period. An increase in inventory turnover rate means that the company is selling its inventory more frequently, which reduces the amount of time that inventory sits on shelves before it is sold. This, in turn, reduces the cash cycle, as the company will have a shorter cash-to-cash cycle for each unit of inventory sold.

An Increase in Which One of the Following Will Decrease