A Firm Has an Average Age of Inventory of 101

question 161

Multiple Choice

A firm has an average age of inventory of 101 days, an average collection period of 49 days, and an average payment period of 60 days. The firm's cash conversion cycle is ________ days.

• A) 60
• B) 52
• C) 41
• D) 90

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Definitions:

Moro Reflex

A startle reflex seen in newborns, which involves flinging the arms outwards and then hugging themselves, in response to a feeling of falling or loud noises.

Palmer Grasp

An infantile reflex that involves the curling of fingers around an object placed in the palm of the hand.

Rooting

An instinctual reflex in babies that prompts them to turn their head toward a touch on their cheek or mouth area, assisting in breastfeeding.

Western Industrialized

Referring to countries in the Western Hemisphere that have highly developed economies, industries, and infrastructures.