How Is the Cash Conversion Cycle Computed

question 19

Multiple Choice

How is the cash conversion cycle computed?

• A)days' inventory outstanding + days' sales outstanding - days' payable outstanding.
• B)days' inventory outstanding - days' sales outstanding - days' payable outstanding.
• C)days' inventory outstanding - days' sales outstanding + days' payable outstanding.
• D)days' inventory outstanding + days' sales outstanding + days' payable outstanding.

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Definitions:

Ammonia

A compound of hydrogen and nitrogen (NH3) characterized by a sharp smell, used in many industrial and cleaning products, and present in the metabolism of organisms.

Lewis Structure

Visual representations that demonstrate the connections between molecule atoms and indicate the presence of unshared electron pairs.

Propane

A three-carbon alkane with the molecular formula C3H8, commonly used as a fuel in heating and cooking appliances.

Condensed

A state of matter that is characterized by particles being in close proximity, typically referring to liquids and solids.