Asked by
Countless Lewis
on Oct 28, 2024
Verified
Which of the following would lengthen the operating cycle?
A) Faster collection of accounts receivables.
B) Selling inventory in a shorter period of time.
C) Increasing the number of customers who pay cash
D) Relaxing credit terms and allowing customers more time to pay.
Operating Cycle
The average time period between purchasing goods for inventory and receiving cash from selling those goods.
Accounts Receivables
Sums due to a company from its customers for products or services rendered but not yet compensated for.
- Determine the constituents and methods for calculating the operating cycle.
Verified Answer
MG
Learning Objectives
- Determine the constituents and methods for calculating the operating cycle.