Indicate the effect of the following on the cash cycle: Accounts payable turnover goes up Group...

Question

Question

Indicate the effect of the following on the cash cycle: Accounts payable turnover goes up

Group of answer choices

No change

Increase

Decrease

Answer 1

Answer #1

The correct answer is Increase.

Note: Cash Cycle = Operating Cycle - Payable Period

When there is an increase in Accounts payable turnover , Payable Period decreases and hence there is a increase in the cash cycle.

Answer 2

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