A Company Has 30 Days in Payables, 15 Days in Inventory

question 26

Multiple Choice

A company has 30 days in payables, 15 days in inventory, and 20 days sales outstanding. How many days are in the company's cash conversion period?

• A) 5
• B) 25
• C) 45
• D) 65

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Definitions:

Dixiecrats

A political party in the United States, formally known as the States' Rights Democratic Party, which split from the Democratic Party in 1948 in opposition to its policy of extending civil rights.

Civil Rights

Rights guaranteed to individuals by law, including freedom of speech, assembly, and equality before the law, aimed at preventing discrimination.

Poll Tax

A tax levied as a fixed sum on every liable individual, historically used as a means of voter suppression by requiring payment as a precondition for voting.

Taft-Hartley Act

A 1947 federal law in the United States that restricted the activities and power of labor unions, also known as the Labor Management Relations Act.