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Which of the following statements is true? I. As the accounts recelvable turnover ratio decreases, the average collection perlod increases. II . If a company's
Which of the following statements is true?
I. As the accounts recelvable turnover ratio decreases, the average collection perlod increases.
II If a company's operating cycle is much longer than its average payment perlod for suppliers, it creates the need to borrow money to fund its Inventorles and accounts recelvable.
Multiple Choice
Both statements are true.
Only statement I Is true.
Neither statement is true.
Only statement II is true.
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