Published on in “Design”, language — English. 13 pages.
Which one of the following statements is correct concerning the cash cycle?
Accepting a supplier’s discount for early payment decreases the cash cycle.
Increasing the accounts payable period increases the cash cycle.
The longer the cash cycle, the more likely a firm will need external financing.
The cash cycle can exceed the operating cycle if the payables period is equal to zero.
Offering early payment discounts to customers will tend to increase the cash cycle. More
