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Which One of the Following Will Increase the Cash Cycle

Question 7

Multiple Choice

Which one of the following will increase the cash cycle?


A) Increasing the cash discounts given to customers who pay their accounts early
B) Having a larger percentage of customers paying with cash instead of credit
C) Paying your suppliers earlier to receive the discount they offer
D) Buying less raw materials to have on hand
E) Ordering raw materials inventory only when you need it rather than ahead of time

Correct Answer:

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