If a Firm Only Accepts Cash for the Purchase of Its

Multiple Choice

If a firm only accepts cash for the purchase of its products, what effect would this have on the operating and cash cycles?

A) The operating and cash cycles would be equal.
B) The operating and cash cycles would decrease relative to offering credit to customers.
C) Only the cash cycle would decrease relative to offering credit to customers.
D) Only the operating cycle would increase relative to offering credit to customers.