A Firm Has an Average Age of Inventory of 60

question 8

Multiple Choice

A firm has an average age of inventory of 60 days, an average collection period of 45 days, and an average payment period of 30 days. The firm's cash conversion cycle is ________ days.

• A) 15
• B) 45
• C) 75
• D) 135

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Definitions:

Epidermis

The outermost layer of skin that serves as a protective barrier against the environment.

Collagen Fibers

Ropelike protein of the extracellular matrix.

Dermis

Dense irregular connective tissue that forms the deep layer of the skin.

Diencephalon

A region of the brain that includes structures such as the thalamus and hypothalamus, involved in sensory and autonomic functions.