Assume All Sales And Purchases Are On Credit

Assume all sales and purchases are on credit. Which one of the following statements is correct concerning the cash cycle?a. the cash cycle starts when inventory is purchasedb. the longer the cash cycle, the more likely a firm will need external financingc. increasing the accounts payable period increases cash cycle (*picked answer and was wrong*)d. the cash cycle can exceed the operating cycle if the payables period is equal to zeroe. adopting a more liberal accounts receivable policy will tend to decrease the cash cycle

Order Now