A Firm Has an Average Age of Inventory of 20

question 84

Multiple Choice

A firm has an average age of inventory of 20 days, an average collection period of 30 days, and an average payment period of 60 days. The firm's cash conversion cycle is ________ days.

• A) 70
• B) 50
• C) -10
• D) 110

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Definitions:

Chlorophyll

A green pigment found in the chloroplasts of plants, algae, and some bacteria, essential for photosynthesis as it absorbs light energy to convert carbon dioxide and water into glucose.

Mitochondrion

An organelle found in large numbers in most cells, in which the biochemical processes of respiration and energy production occur. It has a double membrane, the inner layer being folded inward to form layers (cristae).

Chloroplast

Organelle of photosynthesis in plants and photosynthetic protists. Light-dependent reactions occur at its inner thylakoid membrane; light-independent reactions, in the stroma.

Thylakoid Membrane

A membrane-bound structure within chloroplasts that contains chlorophyll, where the light-dependent reactions of photosynthesis occur.