During the Year the Following Changes Were Observed

question 96

Multiple Choice

During the year the following changes were observed. (I.) Inventory period increased by 12 days
(II) ) Receivables period decreased by 6 days
(III.) Accounts payable period increased by 4 days
Find the net change in cash conversion cycle.

• A)-10 days
• B)+2 days
• C)+10 days
• D)+14 days ∆cash conversion cycle = (∆inventory period + ∆receivables period) - ∆accounts receivable period

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Definitions:

United States

A nation located in North America, made up of 50 states, a federal district, five significant autonomous territories, and a multitude of possessions, recognized for its vast economy and heterogeneous population.

Disposable Income

The amount of money that households have available for spending and saving after income taxes have been accounted for.

Inequality

The unequal distribution of income, wealth, opportunities, and other economic variables within a society.

Countries

Geographically and politically defined areas, recognized as distinct entities in political geography.