Question

Which one of these will decrease the cash cycle, all else held constant? Multiple Choice Decreasing the inventory turnover rate Increasing the inventory period Increasing the accounts receivable period Increasing the accounts receivable turnover rate Decreasing the accounts payable period

Answer 1

Answer:

• Option- Decreasing the accounts payable period will decrease the cash cycle.                                                                                                        

Explanation:

• The whole process or mechanism of flow of cash flow is greatly effected when the amount of money which is required to be paid in the mean time is decreased and thus we get a decrease in the accounts payable period.