Which one of the following will decrease the operating cycle?

A) Paying accounts payable faster.
B) Discontinuing the discount given for early payment of an accounts receivable.
C) Decreasing the inventory turnover rate.
D) Collecting accounts receivable faster.
E) Increasing the accounts payable turnover rate.

Operating Cycle

The duration it takes for a company to purchase inventory, sell it, and then convert the sales back into cash. It reflects the efficiency with which a company can turn its product into cash.

Inventory Turnover

A ratio showing how many times a company's inventory is sold and replaced over a period, indicating efficiency in managing stock.

Accounts Payable

The amount of money that a company owes to its suppliers or creditors for goods and services received but not yet paid for.