Which of the Following Would Result in a Negative Cash

question 46

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 of 7 days, inventory conversion period of 30 days and payables deferral period of 30 days
• C)Average collection period of 60 days, inventory conversion period of 30 days, payables deferral period of 7 days
• D)Average collection period of 7 days, inventory conversion period of 30 days, payables deferral period of 60 days

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Definitions:

Five-Figure Accuracy

Describes precision to five significant digits in numerical representation, ensuring a high degree of accuracy in calculations or measurements.

Accurate

Precisely correct, exact, or without error.

Cent

A monetary unit that is equal to one hundredth of the basic unit of currency in many countries, including the United States.

Accurate

The degree to which the result of a measurement, calculation, or specification conforms to the correct value or a standard.