A Firm Has an Average Age of Inventory of 20

question 18

Multiple Choice

A firm has an average age of inventory of 20 days, an average collection period of 30 days, and an average payment period of 60 days. The firm's cash conversion cycle is_________ days.

• A) 50
• B) 110
• C) 70
• D) -10

---

Definitions:

Encouragement

The act of giving support, confidence, or hope to someone, often motivating them to continue a course of action.

Humanism

A theory that stresses the potential of all humans, who have the same basic needs, regardless of culture, gender, or background.

Psychological

Pertaining to the mind or mental processes, emotional states, and behavior, often focusing on how these aspects influence individuals and their interactions with others.

Professionals

Professionals are individuals who possess specialized knowledge and skills in a particular field, often requiring formal qualifications and bound by certain standards of conduct.