- November 3, 2022 at 7:29 am #670568AliSher123Participant
- Topics: 24
- Replies: 13
I just want to clarify a few things
Firstly if payable days increases this means that we are taking longer to pay our payables and therefore cash is not going out for that period which means cash operating cycle is shortened?
Is it true = payables days increase cash operating cycle increases ?
When reading the section A mcqs there are some areas where they conflict whether or not payable inc or dec cause any effect on working capital cycleNovember 3, 2022 at 9:45 am #670581John MoffatKeymaster
- Topics: 56
- Replies: 53175
An increase in the payables days will indeed shorten the operating cycle, as I explain in my free lectures on the management of working capital.
I do not know what you mean about areas in Section A questions where you think there is a conflict. If you have any concerns about specific questions then you will have to tell me the question and then I can explain.
Have you watched my lectures on working capital management? The lectures are a complete free course for Paper FM and cover everything needed to be able to pass the exam well.
- You must be logged in to reply to this topic.