The operating cycle will decrease if you decrease the:
A)days sales in inventory.
B)days in accounts payable.
C)cash cycle by increasing the accounts payable period.
D)accounts receivable turnover rate.
E)speed at which inventory is sold.

Question

Quizplus · Accepted Answer

The operating cycle is the time it takes for a company to convert its inventory into cash. By decreasing the days sales in inventory, the company can sell its inventory more quickly and therefore reduce its operating cycle. This can be achieved through better inventory management and faster turnover of inventory.

The Operating Cycle Will Decrease If You Decrease The