Which of the Following Statements Is Not Correct Concerning the Elements

question 103

Multiple Choice

Which of the following statements is not correct concerning the elements of the cash conversion cycle time?

• A)The higher the number of days in the cash conversion cycle,the more efficiently the company is managing its cash.
• B)Effectively managing working capital is important for businesses to survive and profit.
• C)The cash conversion cycle measures the average time it takes to convert cash outflows into cash inflows from customers.
• D)Lean manufacturers may reduce the total cash conversion cycle time.
• E)The cash conversion cycle is based on accounts receivable,accounts payable,and inventory.

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Definitions:

Resilient

The ability to withstand or recover quickly from difficult conditions.

Middle-Income Counterparts

Individuals or groups belonging to the socio-economic class that is between the working class and the upper class, often considered the average or standard economic status in society.

Child-Support Payments

Financial contributions that a non-custodial parent is legally obligated to pay to help support their offspring's upbringing and care.

Higher-Paying Job

Employment that offers a salary or wage significantly above the average for a given profession or region.