A Firm Can Reduce Its Cash Conversion Cycle by

question 76

Multiple Choice

A firm can reduce its cash conversion cycle by

• A)increasing its average age of inventory
• B)increasing its average collection period
• C)decreasing its average payment period
• D)none of the above

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Definitions:

Weekly Salaries

A compensation structure where employees are paid a set amount on a weekly basis, regardless of the hours worked.

Adjusting Entry

A journal entry made at the end of the accounting period to allocate income and expenditure to the correct period.

Accounting Period

denotes the specific period of time covered by financial statements, typically a year or a quarter.

Liability Insurance

Insurance that provides protection against claims resulting from injuries and damage to people and/or property.