Improvements to cash management include all of the following EXCEPT a reduction in
A) the cash turnover.
B) the cash conversion cycle.
C) the average age of inventory.
D) the average collection period.

Question

Quizplus · Accepted Answer

Reduction in cash turnover is not an improvement in cash management. A higher cash turnover indicates that a company is generating more sales for every dollar of cash they have on hand, which is a positive indicator of cash management. Therefore, reducing cash turnover would not be considered an improvement in cash management.

Improvements to Cash Management Include All of the Following EXCEPT