How Is the Cash Conversion Cycle Calculated

question 39

Multiple Choice

How is the cash conversion cycle calculated?

• A)Average collection period + days inventory held + Days payable outstanding.
• B)Average collection period - days inventory held + Days payable outstanding.
• C)Average collection period - days inventory held - Days payable outstanding.
• D)Average collection period + days inventory held - Days payable outstanding.

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Definitions:

Group Pressure

The influence exerted by a group that encourages individuals to change their attitudes, values, or behaviors to conform to group norms.

Social Control

The mechanisms, strategies, and institutions society employs to persuade or force individuals to conform to social norms and values.

Informational Social Influence

The process of changing one's behavior or beliefs in response to perceived expertise or knowledge of others.

Conformity Pressures

Social forces that compel individuals to align their attitudes, beliefs, or behaviors with those of a group.