Question

If the credit period is increased for the customers of the company operating cycle will

Answer 1

Answer:

Explanation:

If credit repayment times are increased, customers will take longer to pay their bills, which will lead to an increase in the operating cycle. c. Decrease. If the inventory turnover increases, the inventory period decreases.

Answer 2

Answer:

$\color{red} \huge\bold\star \underline \mathcal {ANSWER }\star$

If the credit period is increased by the suppliers of the company cash conversion cycle will be reduced, so option A is the correct answer.

Credit period is nothing but the time frame allotted by the suppliers to complete the due payment for the product sell.

If they increase the period, the customers will not pay the money immediately so the cash conversion will automatically deasese.

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