Question

Which one of these affects the length of the cash cycle but not the operating cycle? A) Inventory period B) Accounts payable period C) Both the accounts receivable and inventory periods D) Accounts receivable period E) Both the accounts receivable and the accounts payable periods

Answer 1

Answer:

E) Both the accounts receivable and the accounts payable periods

Explanation:

The account receivable and the accounts payable affect the length of the cash cycle. This is because, the longer the cash cycle, the more likely a firm will need external financing.