Firm takes actions that reduce its days sales outstanding

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If a firm takes actions that reduce its days sales outstanding (DSO), then, other things held constant, this will lengthen its cash conversion cycle (CCC).

True or False

Three factors affecting a firm's business risk are the variability of demand for the firm's products, variability of the products' sales prices, and the extent to which operating costs are fixed.

True or False

As a firm's sales grow its current asset accounts tend to increase. For instance, as sales increase the firm's inventories increase and its level of accounts payable will increase. Thus, spontaneously generated funds will arise from transaction accounts that increase as sales increase.

True or False

Reference no: EM13953744

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