What Is the Length of the Cash Conversion Cycle for a Firm

question 65

Multiple Choice

What is the length of the cash conversion cycle for a firm with annual sales (all cash) of $280,000, an inventory conversion period of 35 days, and a payables deferral period of 25 days?

• A) 0 days
• B) 25 days
• C) 10 days
• D) None of these are correct

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Definitions:

Armed Robbery

A robbery where the perpetrator uses a weapon to threaten or cause harm, increasing the severity of the crime.

Aggravated

Made more severe or intense, especially in law, typically referring to more serious or intensified charges or consequences.

F.Lee Bailey

A prominent American defense attorney known for his role in several high-profile legal cases.

Misdemeanor

A crime less serious than a felony that is generally punishable by a prison sentence of not more than one year.