Which of the Following Represents the Correct Formula for Calculating

question 111

Multiple Choice

Which of the following represents the correct formula for calculating the cash conversion cycle?

• A)Days' sales in inventory − Days' payable outstanding.
• B)Days' sales in cost of goods sold + Days' sales in inventory − Days' payable outstanding.
• C)Days' sales in accounts receivable + Days' sales in inventory − Days' payable outstanding.
• D)Days' sales in cost of goods sold − Days' payable outstanding.
• E)Days' sales in accounts receivable − Days' payable outstanding.

---

Definitions:

Serous Cells

Gland cells that produce a watery, protein-rich fluid, playing key roles in lubrication and protection in various organs and cavities of the body.

Mucus Neck Cells

Specialized cells in the stomach that produce mucus to protect the lining of the stomach from acidic gastric juice.

Adventitia

The outermost layer of the wall of a blood vessel or other organ, consisting mainly of connective tissue, providing structural support and protection.

Serosa

The outermost layer of tissue that envelops some internal organs, part of the lining of the body cavities and a structure involved in protection and secretion.