The Cash Conversion Cycle (CCC)is Defined As

question 34

Multiple Choice

The cash conversion cycle (CCC) is defined as:

• A)Inventory Days + Accounts Receivable Days - Accounts Payable Days.
• B)Inventory Days - Accounts Receivable Days - Accounts Payable Days.
• C)Inventory Days + Accounts Receivable Days + Accounts Payable Days.
• D)Inventory Days + Accounts Payable Days - Accounts Receivable Days.

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Definitions:

Adjusting Entry

A journal entry made at the end of an accounting period to allocate income and expenditure to the appropriate period for a more accurate financial report.

Salaries Payable

An accounting liability representing the amounts owed to employees for work performed but not yet paid.

Adjusting Entry

Journal entries made at the end of an accounting period to update account balances to their correct amounts before the preparation of financial statements.

Interest Receivable

An accounting term representing the interest income that has been earned but not yet received in cash.