A Negative Cash Conversion Cycle Indicates That the

question 35

Multiple Choice

A negative cash conversion cycle indicates that the

• A)operating cycle exceeds the average payment period.
• B)average payment period is less than 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:

Environmental Factors

Environmental factors refer to external influences on living organisms that can affect their growth, development, and survival.

In Vitro Fertilization

A medical procedure whereby an egg is fertilized by sperm outside the body, with the resulting embryo then transferred to the uterus for pregnancy.

Ova

The female reproductive cells or eggs in animals and plants, which when fertilized by male gametes, lead to reproduction.

Sperm

The male gamete or reproductive cell involved in sexual reproduction, which can fertilize the female ovum.