Which of the Following Is NOT True of the Cash

question 60

Multiple Choice

Which of the following is NOT true of the cash conversion cycle?

• A)It is the net period from the start of cash outflow for producing a product or service until the associated cash inflow materializes from the sale of that product or service.
• B)Cash Conversion Cycle = Production Cycle + Collection Cycle - Payment Cycle
• C)Cash Conversion Cycle = Production Cycle + Collection Cycle + Payment Cycle
• D)The cash conversion cycle essentially measures how quickly a company can convert its products or services into cash.

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Definitions:

Warranties of Title

Legal guarantees provided by a seller to a buyer that the seller has the right to sell the property and that the property is free from any lien or encumbrance.

Subterranean Rights

Refers to the rights to use and exploit underground resources such as minerals, oil, and natural gas located beneath a property.

Fructus Industrials

Crops that are planted and harvested by human labor, such as wheat or corn.

Trade Fixture

Personal property that a tenant installs on leased premises for business purposes, which can be removed at the lease's termination.