The Cash Conversion Cycle Is the Amount of Time Taken

question 40

True/False

The cash conversion cycle is the amount of time taken to buy materials and produce a finished good plus the time needed to collect sales made on credit minus the time taken to pay suppliers for purchases on credit.

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Definitions:

Gift Revoked

The act of taking back or withdrawing a gift once given, under certain legal circumstances.

Rightful Ownership

Lawful possession or title of property or assets by an individual or entity.

Tying Arrangement

An illegal agreement in which the sale of one product is tied to the sale of another.

Cross-Licensing Agreement

An arrangement where two or more parties grant each other rights to intellectual property, often to use patents without suing for infringement.