Decrease the length of the cash cycle

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Reference no: EM131535446

1. All else the same, which of the following would decrease the length of the cash cycle?

The inventory period decreases.

The inventory turnover decreases.

The accounts receivable turnover decreases.

The accounts payable turnover increases.

2. Which of the following is a false statement?

Managing short-term cash flows involves managing the firm’s liquidity.

In managing short-term finances, a financial manager should seek the optimal level of investment in current assets.

A financial manager should use a cash budget to identify short-term financial needs.

none of the above

Reference no: EM131535446

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