MY CHOICE IS "B", Because if we increase the account payable, we will pay suppliers...
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MY CHOICE IS "B", Because if we increase the account payable, we will pay suppliers later, so we hold longer on the cash, increasing the cash cycle... is this correct? becuase I got different answers from other tutoors. thanks
13. Mycale's has always paid its suppliers in 30 days. The company just hired a new financial officer who is changing the policy such that suppliers will now be paid in 45 days. This change will ______ the accounts payable period and _______ the cash cycle.
A. Increase; not affect
B. Increase; increase
C. Increase; decrease
D. Decrease; increase
E. Decrease; decrease
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