Sunday, November 10, 2019

An increase in which one of the following will decrease the cash cycle, all else equal?


The operating cycle describes how a product: 
 
A. 
is priced.

B. 
is sold.

C. 
moves through the current asset accounts.

D. 
moves through the production process.

E. 
generates a profit.
Refer to section 18.2


23.
Which of the following determines the length of the operating cycle?

I. cash cycle
II. inventory period
III. accounts payable period
IV. accounts receivable period 
 
A. 
I and III only

B. 
II and IV only

C. 
I, II, and IV only

D. 
II, III, and IV only

E. 
I, II, III, and IV
Refer to section 18.2


24.
Which of the following will increase the cash cycle, all else constant?

I. increasing the inventory period
II. decreasing the accounts receivable turnover rate
III. increasing the accounts payable period
IV. decreasing the accounts receivable period 
 
A. 
I and II only

B. 
III and IV only

C. 
I and IV only

D. 
I, II, and III only

E. 
I, III, and IV only
Refer to section 18.2

25.
An increase in which one of the following will decrease the cash cycle, all else equal? 
 
A. 
payables turnover

B. 
days sales in inventory

C. 
operating cycle

D. 
inventory turnover rate

E. 
accounts receivable period
Refer to section 18.2

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