Use the Table for the Question(s)below

question 90

Multiple Choice

Use the table for the question(s) below.
Luther Enterprises Ltd had sales of $850 million and a cost of goods sold of $500 million in 2016.
A simplified balance sheet for the firm appears below:
-Which of the following would decrease a firm's cash conversion cycle?

• A)increase the accounts payable days
• B)increase the accounts receivable days
• C)increase the inventory days
• D)increase the cash days

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Definitions:

Industry

The production of goods or related services within an economy, or a specific sector of production or trade.

Irreversibility

The cognitive incapacity in early childhood to understand that actions, once performed, can be undone to return to the original state.

Mental Undo

The cognitive process of reversing or attempting to reverse the effects of one’s earlier actions or decisions.

Piaget

Jean Piaget was a Swiss psychologist known for his pioneering work in child development, particularly his theory of cognitive development that describes how children develop intellectually throughout the course of childhood.