Which of the Following Would Result in a Negative Cash

question 126

Multiple Choice

Which of the following would result in a negative cash conversion cycle?

• A) A negative cash conversion cycle is not possible.
• B) Average collection period 7 days, inventory conversion period 30 days, payables deferral period 30 days.
• C) Average collection period 60 days, inventory conversion period 30 days, payables deferral period 7 days.
• D) Average collection period 7 days, inventory conversion period 30 days, payables deferral period 60 days.

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Definitions:

Price Inelastic Demand

A situation where the quantity demanded of a good does not change significantly in response to changes in its price.

Luxury

Goods or services that are considered superior in quality and high in price, often seen as status symbols and not essential for basic needs.

Price Elastic

A measure of how the quantity demanded of a good responds to a change in its price.

Honda Accord

The Honda Accord is a model of car manufactured by Honda, known for its reliability, efficiency, and comfort.