An increase in which one of the following will decrease the cash cycle,all else equal?
A) Payables turnover
B) Days 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 means that inventory is being sold more quickly, which reduces the days sales in inventory and thus decreases the cash cycle.

An Increase in Which One of the Following Will Decrease