alleryStart learning →How can a company shorten its working capital cycle?
AHolding more idle cash
BGiving longer credit terms
CCollecting receivables quicker
DRaising inventory levels
Answer & Solution
Correct answer: C. Collecting receivables quicker
Companies reduce the cycle by collecting receivables quicker or by stretching accounts payable.
Keep practising International Working Capital Management
Browse all International Working Capital Management questions for CA Final, or explore more Strategicfinancialmanagement topics.
Related questions
In a multilateral net settlement system, how does each participant settle?What is the primary objective of netting in financial markets?When does close-out netting normally operate?What does positive pay reduce?What does a lockbox service help a company do?Which bank service moves surplus balances into a money market fund overnight?Which technique converts debtors to cash in short-term financing?Which firm policy directly affects the cash conversion cycle by governing sales on credit?