Which of the Following Is a Measure of the Time

question 34

Multiple Choice

Which of the following is a measure of the time that it takes to convert current assets into cash?

• A) accounts receivable turnover ratio
• B) cash to cash operating cycle
• C) number of days' sales in inventory
• D) working capital

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Definitions:

Consumer Price Index

The Consumer Price Index (CPI) measures the average change over time in the prices paid by urban consumers for a basket of consumer goods and services.

Inflation Rate

The pace at which the overall price level for goods and services increases, diminishing the buying power.

Consumer Price Index

A measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food, and medical care, used to estimate inflation.

Base-Year Prices

Prices from a specific base year used to express the real value of goods and services in order to remove the effects of inflation over time.