A Firm's Cash Conversion Cycle Is Equal to Its Operating

question 15

Multiple Choice

A firm's cash conversion cycle is equal to its operating cycle minus its ____.

• A) inventory conversion period
• B) receivables conversion period
• C) payables deferral period
• D) None of these are correct

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Definitions:

Government Expenditures

Financial spending by the government which includes spending on goods and services, social welfare, public infrastructure, and defense.

Short Run

A period in economic theory during which at least one input (like capital) is fixed, contrasting with the long run where all factors of production are variable.

Prices

The amount of money expected, required, or given in payment for something.

Unemployment

Unemployment refers to the situation when individuals who are able and willing to work cannot find employment.