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.