A Firm with a Cash Conversion Cycle of 175 Days

question 91

Multiple Choice

A firm with a cash conversion cycle of 175 days can stretch its average payment period from 30 days to 45 days. This will result in a(n) ________ in the cash conversion cycle of ________ days.

• A) increase; 15
• B) decrease; 15
• C) increase; 45
• D) decrease; 45

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Definitions:

Lung Recoil

Decrease in the size of an expanded lung as a result of a decrease in the size (volume) of its alveoli; due to elastic recoil of elastic fibers surrounding alveoli and water surface tension of a thin film of water within alveoli.

Respiratory Muscles

The muscles involved in the process of breathing, including the diaphragm and intercostal muscles.

Inspiratory Reserve Volume

Maximum volume of air that can be inspired after a normal inspiration.

Forced Expiration

The act of expelling air from the lungs with effort beyond normal exhalation, often used in pulmonary testing.