Which of the Following Statements Is NOT True

question 32

Multiple Choice

Which of the following statements is NOT true?

• A) The cash conversion cycle begins when a firm invests cash to purchase the raw materials that would be used to produce the goods that the firm manufactures.
• B) The cash conversion cycle begins when the firm uses its cash to purchase raw materials and ends when the firm collects cash payments on its credit sales.
• C) To measure the cash conversion cycle, we need another measure called the days' payables outstanding.
• D) The cash conversion cycle ends not with the finished goods being sold to customers and the cash collected on the sales; but when you take into account the time taken by a firm to pay for its purchases.

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Definitions:

Human Relations

Interpersonal interactions and relationships, including the social and emotional aspects, within the context of the workplace or broader society.

Emotional Intelligence

The ability to recognize, understand, manage, and utilize emotions effectively in oneself and others.

Senior Professionals

Experienced individuals in a field or industry who are often regarded for their expertise and leadership capabilities.

Human Capital Rareness

The skills and talents of an organization’s people that are unique in the industry.