Question

A company can shorten its cash cycle by: __________

a. Reducing inventory turnover
b. Reducing account payables
c. Reducing days receivable
d. None of the above

Answer 1

None of the above

Step-by-step explanation:

Companies can shorten their cash cycles by turning over their inventory faster. The quicker a company sells its goods, the sooner it takes in cash from cash and credit card sales and begins its accounts receivable aging. Inventory turnover has no impact on the cash cycles of service companies with no inventory.

Answer 2

C is the answer (I think)