A Firm Has an Average Age of Inventory of 20

question 84

Multiple Choice

A firm has an average age of inventory of 20 days, an average collection period of 30 days, and an average payment period of 60 days. The firm's cash conversion cycle is ________ days.

• A) 70
• B) 50
• C) -10
• D) 110

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Definitions:

Vestibule

An entryway or small foyer leading into a larger space, or the central part of the ear connecting the cochlea and semicircular canals.

Cochlear Duct

A spiral-shaped cavity in the cochlea of the inner ear, filled with endolymph fluid, crucial for converting sound vibrations into neural signals.

Scala Vestibuli

The scala vestibuli is a perilymph-filled cavity inside the cochlea of the inner ear; it lies superior to the scala media and transmits sound vibrations to the cochlear duct.

Inner Ear

A complex structure within the ear responsible for hearing and balance, encompassing the cochlea, vestibule, and semicircular canals.