A Firm Has an Average Age of Inventory of 60

question 99

Multiple Choice

A firm has an average age of inventory of 60 days, an average collection period of 45 days, and an average payment period of 30 days. The firm's cash conversion cycle is__________ days.

• A) 135
• B) 45
• C) 75
• D) 15

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Definitions:

Radical

Describes ideas, actions, or individuals that advocate for thorough or complete social or political reform.

Conservative

A political and social philosophy promoting traditional institutions in the context of culture and civilization, emphasizing stability, continuity, and a cautious approach to change.

American System

An economic plan that played a significant role in American policy during the first half of the 19th century, advocating for a strong role for federal government in the economy, including tariff protection, national banking, and internal improvements.

Federal Government

The national government of a federated state, which holds the authority to govern at a level above individual states or provinces, typically responsible for the country's foreign policy, defense, and national laws.