A Negative Cash Conversion Cycle Indicates That The…

question 105

Multiple Choice

A negative cash conversion cycle indicates that the…

• A) operating cycle exceeds the average payment period.
• B) average payment period exceeds the operating cycle.
• C) firm is shortening its average payment period and lengthening its average collection period.
• D) lengthening its average collection period and lengthening its inventory period.

---

Definitions:

Warning Stroke

Also known as a transient ischemic attack, it is a temporary blockage of blood flow to the brain, indicating the potential for a future stroke.

Blood Flow

The continuous circulation of blood through the cardiovascular system, delivering oxygen and nutrients to and removing waste products from tissues.

Congestive Heart Failure

A chronic condition wherein the heart's ability to pump blood is inadequate, leading to the accumulation of fluid in lungs and other body parts.

Leukemia

A category of cancer involving the blood and bone marrow, distinguished by the surplus production of abnormal white blood cells.