Which of the Following,considered Independently of the Others,would Increase the Cash

question 36

Multiple Choice

Which of the following,considered independently of the others,would increase the cash conversion cycle?

• A) an increase in inventory turnover
• B) an increase in accounts receivable turnover
• C) an increase in accounts payable turnover
• D) a decrease in average age of inventory

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Definitions:

Average Cost

It refers to the total cost per unit produced, calculated by dividing the total cost of production by the number of units produced.

Copper

A reddish-brown, malleable, ductile metallic element used as a conductor of heat and electricity, and in various alloys.

Zinc

A chemical element with symbol Zn and atomic number 30, used primarily for galvanizing steel to protect against corrosion.

Production Function

A mathematical relation that describes the maximum amount of output that can be obtained from a given set of inputs, under certain assumptions.