Which One of the Following "Measures" the Average Days of Sales

question 23

Multiple Choice

Which one of the following "measures" the average days of sales committed to the extension of trade credit?

• A) sale-to-cash conversion period
• B) inventory-to-sale conversion period
• C) purchase-to-payment conversion period
• D) cash conversion cycle period

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Definitions:

Coefficient

A numerical or constant factor in a mathematical equation that multiplies a variable.

Spearman Rank-Order

An approach that doesn't rely on parameters to gauge the correlation of ranks, examining the extent to which a monotonic function can accurately represent the linkage between two variables.

Nominal Level

The simplest level of measurement that classifies data into distinct categories within which no order or ranking can be inferred.

Research Hypothesis

A statement made by researchers predicting a potential outcome or relationship between variables in a study, to be tested through empirical research.