NO.PZ2016021706000052
问题如下：
Which of the following statements is correct to describe a decrease in operating cycle and an increase in cash conversion cycle?
选项：
A.Increased payables turnover will result in a decrease in operating cycle. Increased receivables turnover will result in an increase in cash conversion cycle.
B.A decrease in days of receivables will result in a decrease in operating cycle. Decreased receivables turnover will result in an increase in cash conversion cycle.
C.Increased payables turnover will result in a decrease in operating cycle. Decreased receivables turnover will result in an increase in cash conversion cycle.
解释：
B is correct.
Operating cycle = days of inventory + days of receivables. So a decrease in days of receivables would decrease the operating cycle.
Days of receivables = 365 / receivable turnover. So a decrease in receivables turnover will increase days of receivables. And cash conversion cycle = days of inventory + days of receivables - days of payable, thus a decrease in receivables will increase the cash conversion cycle.
To increase cash cycle, it is decrasing payable rather or receivable?
