Which of the following is NOT true of the cash conversion cycle?
A) It is the net period from the start of cash outflow for producing a product or service until the associated cash inflow materializes from the sale of that product or service.
B) Cash Conversion Cycle = Production Cycle + Collection Cycle - Payment Cycle
C) Cash Conversion Cycle = Production Cycle + Collection Cycle + Payment Cycle
D) The cash conversion cycle essentially measures how quickly a company can convert its products or services into cash.
Answer: C
Explanation: C) The cash conversion cycle = production cycle + collection cycle - payment cycle
You might also like to view...
How do a reciprocal exchange and a mutual insurance company differ?
What will be an ideal response?
Asch could feel fairly confident that his results were legitimate because ________ pressured by the group
A) 35 percent of respondents gave wrong answers when they were not B) only 1 percent of respondents gave wrong answers when they were not C) only 1 percent of respondents gave wrong answers when they were D) 90 percent of respondents gave wrong answers when they were