Skip to content

Ask the Tutor ACCA FM

working capital- operating cycle

BBrian4y ago
Which of the following will shorten the cash operating cycle? A An increase in the raw materials inventory holding period B An increase in the trade payables days C An increase in the trade receivables days D An increase in the production period sir A is the answer ! but then if there is a increase in the raw material holding period the production too will be delayed as well , so how come option A would shorten the cash operating cycle . thank you
John MoffatJohn MoffatTutor4y ago#1
I do not know where you found the question, but the answer to the question as you have typed it is not A, it is B.
Sign into reply to this topic.