A Firm with a Cash Conversion Cycle of 175 Days

question 187

Multiple Choice

A firm with a cash conversion cycle of 175 days wants to stretch its average payment period from 30 days to 45 days. This will result in a(n) ________ in the cash conversion cycle of ________ days.

• A) increase; 15
• B) decrease; 15
• C) increase; 45
• D) decrease; 45

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Definitions:

Iris

The colored part of the eye surrounding the pupil that controls the amount of light entering the eye by adjusting the size of the pupil.

Middle Layer

Typically refers to the intermediate layer in a multi-layered structure, which could pertain to skin, geological formations, or other stratified materials.

Nerve Endings

The tips of nerve fibers where signals are received or sent, crucial for sensing and response mechanisms in the body.

Retina

The light-sensitive layer of tissue at the back of the inner eye that converts light into electrical signals for the brain.