A Negative Cash Conversion Cycle Indicates That the

question 5

Multiple Choice

A negative cash conversion cycle indicates that the

• A)operating cycle exceeds the average payment period.
• B)average payment period exceeds the operating cycle.
• C)firm is shortening its average payment period and lengthening its average collection period.
• D)lengthening its average collection period and lengthening its inventory period.
• E)none of above are correct

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Definitions:

Parietal Peritoneum

The outer layer of the peritoneum that lines the abdominal wall.

Parietal Pericardium

The outer fibrous layer of the pericardium, which surrounds the heart and roots of its major blood vessels.

Lobes

Divisions or sections of an organ separated by fissures or grooves, commonly referred to in the brain, lungs, and liver.

Internal Nares

Openings inside the nose that connect the nasal cavity to the back of the throat.