Which one of the following statements is true,all else constant?
A) An increase in the inventory turnover rate will decrease the cash cycle.
B) Paying a supplier within the discount period,rather than waiting until the end of the normal credit period,decreases the cash cycle.
C) The cash cycle can never be negative.
D) A decrease in the accounts receivable turnover rate decreases the cash cycle.
E) The payables period must be shorter than the receivables period.
Correct Answer:
Verified
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