-The Vertical Intercept of Line (2)on the Above Graph Is

question 117

Multiple Choice

-The vertical intercept of line (2) on the above graph is:

• A) 8
• B) 12
• C) 16
• D) 24

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Definitions:

Accounts Receivable

Money owed to a company by customers for products or services delivered or used but not yet paid for.

Cash Conversion Cycle

A metric that shows how long it takes for a company to convert its investments in inventory and other resources into cash flows from sales.

Inventory Conversion Period

Inventory Conversion Period is the average time taken for a company to convert its inventory into sales.

Payables Deferral Period

The time duration a company takes to pay off its suppliers after a purchase has been made, indicating how well the company manages its cash outflow.