A Company Has 30 Days in Payables, 10 Days in Inventory

question 30

Multiple Choice

A company has 30 days in payables, 10 days in inventory and 20 days for the average collection period. How many days are in the company's cash conversion process?

• A) 0
• B) 20
• C) 40
• D) 60

---

Definitions:

Convertibles

A type of vehicle with a retractable roof, allowing it to transform from a covered to an open-air vehicle.

Administrative Law Judge

An official who presides over administrative hearings, making decisions on disputes between government agencies and those affected by agency decisions.

Federal Trade Commission

A U.S. federal agency established to protect consumers and ensure a strong competitive market by enforcing antitrust and consumer protection laws.

Administrative Complaint

A formal grievance filed with a governmental agency, alleging wrongdoing or violation of rules by an entity or individual.