A Negative Cash Conversion Cycle

question 142

Multiple Choice

A negative cash conversion cycle

• A) means that the operating cycle exceeds the average payment period.
• B) means that the average payment period exceeds the operating cycle.
• C) indicates that the firm is shortening its average payment period and lengthening its average collection period.
• D) is easy for a manufacturing firm to attain.

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Definitions:

Reduce Turnover

Strategies and practices aimed at decreasing the rate at which employees leave a company, thereby improving retention and reducing the costs associated with hiring and training new staff.

Reliable And Valid

Refers to the consistency (reliable) and accuracy (valid) of a method, measurement, or test in yielding dependable results.

Personal Biases

Prejudices or inclinations that affect an individual's views, decisions, and interactions, often unconsciously.

Applicant's Capabilities

The skills, qualifications, and experiences that a job applicant possesses, relevant to a specific job or task.