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working capital- operating cycle

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › working capital- operating cycle

  • This topic has 1 reply, 2 voices, and was last updated 3 years ago by John Moffat.
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  • October 31, 2021 at 1:33 pm #639563
    johnbriane
    Member
    • Topics: 170
    • Replies: 160
    • ☆☆☆

    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

    October 31, 2021 at 3:17 pm #639587
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54655
    • ☆☆☆☆☆

    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.

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