BP Has an Average Age of Inventory of 60 Days

question 131

Multiple Choice

BP has an average age of inventory of 60 days, an average collection period of 45 days, and an average payment period of 30 days.Based on this information, BPs cash conversion cycle is ________ days.

• A)55
• B)65
• C)75
• D)85
• E)none of the above

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Definitions:

Critical Value

A threshold in statistical testing that delineates the boundary for rejecting the null hypothesis.

Left-tailed Area

The area under the curve of a distribution to the left of a specified value, often used in hypothesis testing to determine the likelihood of observing a result at least as extreme as the one observed.

Degrees Of Freedom

The number of independent values or quantities that can vary in the calculation of a statistic, crucial for assessing the relevance of test results.

Water Breaks

Brief pauses during activities intended for the intake of water to stay hydrated and maintain physical or mental performance.