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.

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Definitions:

Larva

The juvenile form of many animals before undergoing metamorphosis, often differing significantly in form and habit from the adult stage.

Develop

To grow or cause to grow and become more mature, advanced, or elaborate.

Accumulated Degree Hours

A measurement used in forensic entomology and agriculture to estimate the growth and development rates of organisms by accumulating temperature over time.

Larva

A larva is the juvenile form of many animals, which undergoes metamorphosis before becoming an adult, often differing markedly in form and behavior from the adult stage.