A Firm Has an Average Age of Inventory of 101

question 310

Multiple Choice

A firm has an average age of inventory of 101 days, an average collection period of 49 days, and an average payment period of 60 days. The firm's cash conversion cycle is

• A) 150 days.
• B) 90 days.
• C) 112 days.
• D) 8 days.

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Definitions:

Compensation

All forms of financial returns and tangible benefits that employees receive as part of an employment relationship.

Reaction Formation

A psychological defense mechanism where an individual unconsciously replaces their true feelings with the opposite.

Work Engagement

A positive, fulfilling, work-related state of mind that is characterized by vigor, dedication, and absorption.

Cultivate

To develop or improve by education or training; to foster growth in skills, knowledge, or qualities.