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:

China

The world's most populous country, located in East Asia, known for its rich history, significant economic power, and rapid modernization and development in recent decades.

Increasing

A process or trend characterized by a growth or rise in quantity, size, or intensity.

Income Distribution

The way in which a nation’s total income is distributed among its population.

Inequality

A term referring to uneven distribution of income, wealth, opportunities, and social status among different groups in society.