Other factors remaining constant, an increase in the average payment period will ________.
A) increase the average collection period
B) decrease the operating cycle
C) not affect the cash conversion cycle
D) not affect the operating cycle

Question

Quizplus · Accepted Answer

An increase in the average payment period does not affect the operating cycle, which is the sum of the average collection period and the inventory conversion period.

Other Factors Remaining Constant, an Increase in the Average Payment