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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
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.