Other things held constant, which of the following alternatives would increase a company's cash flow for the current year?
A. Increase the number of years over which fixed assets are depreciated for tax purposes.
B. Pay down the accounts payables.
C. Reduce the days' sales outstanding (DSO) without affecting sales or operating costs.
D. Pay workers more frequently to decrease the accrued wages balance.
E. Reduce the inventory turnover ratio without affecting sales or operating costs.
Answer: C
You might also like to view...
____________________ is the magnitude of an omission or misstatement in accounting information that will affect the judgment of someone relying on the information
Fill in the blank(s) with correct word
A critical success factor at Stage 2 of location decisions is ______.
A. space to expand B. visibility and traffic patterns C. availability and cost of utilities D. construction and land costs
Gomez Service Company paid their first installment on their Notes Payable in the amount of $2,000. How will this transaction affect the accounting equation?
A) Increase Liabilities (Notes Payable) and decrease Assets (Cash) B) Decrease Assets (Cash) and decrease Owner's equity (Note Payable Expense) C) Decrease Assets (Cash) and decrease Assets (Notes Receivable) D) Decrease Assets (Cash) and decrease Liabilities (Notes Payable)
Choose the correct word or words in parentheses. What (kind of, kind of a) job are you looking for?