An increase in which one of the following will decrease the cash cycle, all else equal?
A) Payables turnover.
B) Day's sales in inventory.
C) Operating cycle.
D) inventory turnover rate
E) accounts receivable period

Question

Quizplus · Accepted Answer

An increase in the inventory turnover rate decreases the cash cycle by reducing the amount of time inventory is held before it is sold, thereby speeding up the conversion of inventory into cash.

An Increase in Which One of the Following Will Decrease