Which statement concerning the operating cash cycle is true?

Question

Quizplus · Accepted Answer

A) It is possible to have a negative operating cash cycle when the company collects cash from customers before paying their suppliers and other expenses.
B) The longer the operating cash cycle, the greater the amount of working capital required because inventory must be purchased and paid for before it is sold and generates cash.
C) Reducing the time period for which inventory is held shortens the operating cash cycle by converting inventory into cash more quickly.

Which Statement Concerning the Operating Cash Cycle Is True