Quiz Ch 18 – Factors Affecting Cash Cycle
Fundamentals of Corporate Finance
Ross, Westerfield, and Jordan
13th Edition
What factor(s), when decreased while holding all other factors constant, will result in an increase in the cash cycle?
What factor(s), when decreased while holding all other factors constant, will result in an increase in the cash cycle?
Which factor(s) impact the length of the cash cycle but NOT the length of the operating cycle?
Which action is likely to increase the inventory period?
What factor(s) will cause a decrease in the operating cycle?
What factor(s) will cause an increase in the operating cycle, assuming all other factors remain constant?
Which combination of factors will most likely result in a financially sound company experiencing a negative net cash inflow for a quarter?
What is the most common method of financing a temporary cash deficit?
What will be the effect of changing production strategy from inventory-based to order-based on various financial metrics, assuming all other factors remain equal?
What happens when a company assigns its accounts receivable to a bank for financing purposes?
What reflects a restrictive short-term financial approach?