Inmoo Company's Average Age of Accounts Receivable Is 45 Days

question 28

Multiple Choice

Inmoo Company's average age of accounts receivable is 45 days, the average age of accounts payable is 40 days, and the average age of inventory is 69 days. Assuming a 365-day year, what is the length of its cash conversion cycle?

• A) 63 days
• B) 67 days
• C) 70 days
• D) 74 days

---

Definitions:

Contained

Something that is held or enclosed within a boundary or container, preventing it from spreading or escaping.

Ovary

In flowering plants, the enlarged, ovule-bearing portion of the carpel that develops into a fruit; female gonad in animals that produces an egg and female sex hormones.

Anther

Male structure of a flowering plant where pollen is produced; attached to the flower by the filament.

Filament

End-to-end chains of cells that form as cell division occurs in only one plane; in plants, the elongated stalk of a stamen.