Multiple Choice
A firm with a cash conversion cycle of 175 days can stretch its average payment period from 30 days to 45 days. This will result in a(n)
A) decrease of 30 days in the cash conversion cycle.
B) decrease of 15 days in the cash conversion cycle.
C) increase of 15 days in the cash conversion cycle.
D) increase of 30 days in the cash conversion cycle.
Correct Answer:
Verified
Correct Answer:
Verified
Q101: A decrease in collection efforts will result
Q103: An increase in accounts receivable turnover due
Q104: When managing inventories, a good strategy is
Q108: The _is the time period that elapses
Q109: Cash inflows-that is, the conversion of the
Q110: The aggressive financing strategy is_ method while
Q111: When the creditworthiness of a customer is
Q128: Increased collection expenditures should reduce the investment
Q129: As the ratio of current assets to
Q134: Because firms are unable to match cash