The Cash Conversion Cycle (CCC)combines Three Factors: the Inventory Conversion

question 83

True/False

The cash conversion cycle (CCC)combines three factors: The inventory conversion period,the receivables collection period,and the payables deferral period,and its purpose is to show how long a firm must finance its working capital.Other things held constant,the shorter the CCC,the more effective the firm's working capital management.

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Definitions:

Marginal Tax Rates

The rate at which the last dollar of a taxpayer's income is taxed, indicating the rate applied to each additional dollar of income.

Budget Deficit

A financial situation where a government spends more money than it receives in revenue over a specified period.

Maturity Stage

The final phase in a product's lifecycle or a bond's life where growth stabilizes, sales level off, and a bond becomes due for payment.