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23. The short-term financial policy that a firm adopts will be reflected in: A. the size of the firm's investment in current assets.B. the financing of current assets.C. the financing of fixed assets.D.Both A and B.E. Both A and C.Difficulty level: MediumTopic: SHORT-TERM FINANCIAL POLICYType: CONCEPTS26-43
Chapter 26 - Short-Term Finance and Planning24. Which one of the following will not affect the operating cycle? Difficulty level: MediumTopic: OPERATING CYCLEType: CONCEPTS25. Which one of the following will increase the cash cycle? Difficulty level: MediumTopic: CASH CYCLEType: CONCEPTS26. An increase in which one of the following will decrease the cash cycle, all else equal? Difficulty level: MediumTopic: CASH CYCLEType: CONCEPTS26-44
Chapter 26 - Short-Term Finance and Planning27. ABC Manufacturing historically produced products that were held in inventory until they could be sold to a customer. The firm is now changing its policy and only producing a productwhen it receives an actual order from a customer. All else equal, this change will: A. increase the operating cycle.B. lengthen the accounts receivable period.C. shorten the accounts payable period.D.decrease the cash cycle.E. decrease the inventory turnover rate.Difficulty level: MediumTopic: CASH CYCLEType: CONCEPTS28. Which one of the following statements concerning the cash cycle is correct? Difficulty level: MediumTopic: CASH CYCLEType: CONCEPTS