The Cash Conversion Cycle

question 48

Multiple Choice

The cash conversion cycle

• A) shows how long a firm keeps its inventory before selling it.
• B) begins when a firm invests cash to purchase the raw materials that would be used to produce the goods that the firm manufactures.
• C) begins when a firm uses its cash to purchase raw materials and ends when the firm collects cash payments on its credit sales.
• D) estimates how long it takes on average for a firm to collect its outstanding accounts receivable balance.

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Definitions:

Spoiling

Overindulgence or excessive leniency in treating a person, typically a child, often resulting in a lack of discipline or self-control in the individual being spoiled.

Social Smile

A developmental milestone in infants, usually appearing around 6 weeks of age, where they begin to smile in response to social interactions.

Anticipatory

Pertaining to the act of expecting or predicting something to happen in the future, often allowing individuals to prepare for potential outcomes.

Attachment

Reciprocal, enduring tie between two people—especially between infant and caregiver—each of whom contributes to the quality of the relationship.