Question

which of the following will cause a decrease in the net operating cycle of a firm?​

Answer 1

Answer:

[Solved] Which of the following will cause a decrease in the net ... Therefore, increase in payment period decreases operating cycle.

Answer 2

Answer:

The following will cause a decrease in the net operating cycle of a firm increase in payment period decreases operating cycle.

Explanation:

A enterprise has two alternatives for decreasing OC: boost up the sale of its stock: If a commercial enterprise is able to sell its stock rapidly, the OC have to fall. lessen the quantity of time it takes to collect receivables: The OC might go down if a business ought to unexpectedly collect credit score income.

decreasing the turnover of payables from stock preserving length plus common series length identical the operating cycle. consequently, the operating cycle can't be in any way impacted by modifications within the payable turnover or payables period. coins conversion cycle will shorten while debts payable rises (accounts payable/fee of goods sold*365).

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