In Order to Achieve a Negative Cash Conversion Cycle a Firm

Multiple Choice

In order to achieve a negative cash conversion cycle a firm would want to:

A) increase its account payable period and its inventory turns.
B) decrease its account payable period and its inventory turns.
C) increase its account payable terms and decrease its inventory turns.
D) decrease its account payable terms and increase its inventory turns.
E) analyze systems and stop whatever processes are causing this, since a negative cash conversion cycle is associated with losses, not profits.