If the Average Accounts Receivable That a Firm Holds Decreases

Multiple Choice

If the average accounts receivable that a firm holds decreases without any decrease in credit sales,the operating cycle will:

A) remain constant because sales remained constant.
B) remain constant because the change will only affect the cash cycle.
C) decrease because the days' sales outstanding will decrease.
D) increase because the accounts receivable turnover will decrease.
E) decrease because the accounts receivable turnover will decrease.