A Firm Can Reduce Its Cash Conversion Cycle by

question 227

Multiple Choice

A firm can reduce its cash conversion cycle by

• A) increasing the average collection period.
• B) increasing the average payment period.
• C) decreasing the average payment period.
• D) increasing the average age of inventory.

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Definitions:

Judgment Sample

A sampling technique where the samples are selected based on the judgment of the researcher, rather than random selection.

Random Sample

A subset of a statistical population in which each member has an equal chance of being chosen, used to make inferences about the whole population.

Correlation

A metric that shows how much two or more variables move in relation to each other.

Causation

The relationship between cause and effect, where one event is the result of the occurrence of another event.