Which ONE of the Following Statements Is True

question 43

Multiple Choice

Which ONE of the following statements is true?

• A) Cash conversion cycle = DSO + DSI + DPO
• B) Cash conversion cycle = DSO + DSI - DPO
• C) Cash conversion cycle = DSO - DPO
• D) None of the above.

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Definitions:

Equipment

Tangible property owned by a company that is used in its operations, such as machinery, computers, and office furniture.

Initial Value Method

An accounting method that records investments at their original cost without adjustment for changes in fair value.

Noncontrolling Interest

The portion of equity interest in a subsidiary not attributable to the parent company, which appears in the consolidated financial statements.

Buildings

Structures considered as fixed assets, used for commercial or industrial purposes, and recorded on a company's balance sheet.