Which one of the following statements concerning the cash cycle is correct?
A) The cash cycle is equal to the operating cycle minus the inventory period.
B) A negative cash cycle is actually preferable to a positive cash cycle.
C) Granting credit to slower paying customers tends to decrease the cash cycle.
D) The cash cycle plus the trade receivables period is equal to the operating cycle.
E) The most desirable cash cycle is the one that equals zero days.
Correct Answer:
Verified
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