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

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Question

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

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

Group of answer choices

Increase

Decrease

No change

business finance

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Answer 1

Answer #1

Solution:

There is an inverse relationship between the operating cycle and accounts payable. Accounts payable increases operating cycle decreases and vice versa.

Option b is correct i.e. decreases

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Answer 2

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