Which of the Following Represents the Correct Formula for Calculating

question 111

Multiple Choice

Which of the following represents the correct formula for calculating the cash conversion cycle?

• A)Days' sales in inventory − Days' payable outstanding.
• B)Days' sales in cost of goods sold + Days' sales in inventory − Days' payable outstanding.
• C)Days' sales in accounts receivable + Days' sales in inventory − Days' payable outstanding.
• D)Days' sales in cost of goods sold − Days' payable outstanding.
• E)Days' sales in accounts receivable − Days' payable outstanding.

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Definitions:

Private Property

The legal designation for ownership of property by non-governmental legal entities, individuals, or corporations.

First Amendment

Part of the United States Constitution that guarantees freedoms concerning religion, expression, assembly, and the right to petition the government.

Constitution

The supreme law of a country that outlines the principles and framework of its government and guarantees certain rights to its citizens.

Thomas Hobbes

A 17th-century English philosopher best known for his work "Leviathan," in which he lays down the foundation for social contract theory, asserting that people consent to give up some rights in exchange for protection of others.