A Firm Has a Cash Conversion Cycle of 120 Days

question 336

Multiple Choice

A firm has a cash conversion cycle of 120 days, an average collection period of 25 days, and an average payment period of 50 days. The firm's average age of inventory is ________ days.

• A) 45
• B) 95
• C) 125
• D) 145

Identify the structure and content of data blocks in programming environments.

Understand the effects of executing bit shift operations on data array configurations.

Describe the process and effect of loading logic words into FIFO stacks through specific instructions.

Comprehend the operational mechanism of word and bit shift registers.

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Definitions:

Process Cost Systems

Accounting systems used to apply costs to similar products that are mass-produced in a continuous fashion, enabling consistent unit cost calculation.

Similar Products

Goods that satisfy the same customer needs or desires and are often interchangeable in use or consumption.

Activities Performed

The actions or operations carried out by an individual or organization in pursuit of certain objectives.

Equivalent Units

A concept used in cost accounting to express the amount of work done on incomplete products in terms of fully completed units of output.