If the average trade receivables that a firm holds decreases without any decrease in credit sales,the operating cycle will:
A) stay the same because of no sales change.
B) stay the same because cash collections are sooner,and it will affect the cash cycle only.
C) decreases because days sales outstanding decreases.
D) stay the same because trade receivables are not in the operating cycle.
E) have an unknown effect.
Correct Answer:
Verified
Q47: Which two of the following four conditions
Q48: The primary difference between a line of
Q48: Which of the following is not included
Q55: Which of the following is not included
Q56: Your firm collects 30% of sales in
Q57: Sources of cash do not include:
A)increases in
Q58: A manufacturing firm has a 90 day
Q58: Assets presented on the statement of financial
Q59: A compensating balance: I. is required when
Q76: Cash cycle equals:
A)inventory period plus trade receivables
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents