A Decrease in the Average Age of Inventory Will Result

question 295

Multiple Choice

A decrease in the average age of inventory will result in ________ in the cash conversion cycle.

• A) an increase
• B) a decrease
• C) an undetermined change
• D) no change

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Definitions:

Regressive

Describing a tax system in which the tax rate decreases as the taxable amount increases, often placing a higher burden on lower-income individuals.

Proportional

Relating to or denoting a relationship where quantities or sizes are in direct relation to each other.

Tax Tables

A set of charts provided by the IRS that help taxpayers determine the amount of federal income tax they owe based on their income level and filing status.

Tax Rate Schedules

Detailed charts provided by the IRS that determine the amount of tax an individual or entity owes based on their income level.