An increase in the average collection period will result in ________ in the operating cycle.
A) an increase
B) a decrease
C) an undetermined change
D) no change

Question

Quizplus · Accepted Answer

An increase in the average collection period means that it takes longer for a company to collect its accounts receivable, which means the operating cycle (the time it takes for a company to convert its inventory into cash) will also increase.

An Increase in the Average Collection Period Will Result in ________