Which of the following statements is (are)correct?
I.An increase in the accounts payable period shortens the cash cycle.
II.The cash cycle is equal to the operating cycle minus the inventory period.
III.A negative cash cycle is preferable to a positive cash cycle.
IV.The cash cycle plus the accounts receivable period is equal to the operating cycle.
A)I only
B)III and IV only
C)I and III only
D)I and IV only
E)I, II, and III only

Question

Quizplus · Accepted Answer

An increase in the accounts payable period shortens the cash cycle, and a negative cash cycle is preferable as it indicates efficient cash management.

Which of the Following Statements Is (Are)correct