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

question 115

True/False

The cash conversion cycle (CCC) combines three factors: The inventory conversion period, the average 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.

---

Definitions:

Personal Delivery

The direct handover of a message or item to its recipient, ensuring a personal touch and receipt confirmation.

Escalation Of Emotion

Escalation of Emotion refers to the intensification of feelings and emotions in a situation, which can impact communication and decision-making processes.

Email Communication

The exchange of messages and information through electronic mail, a key tool for both personal and professional correspondence.

Inductive Outline

A method of organization that starts with specific observations or data and moves to a broader generalization or conclusion.