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3 years ago

Which of the following is NOT true of the cash conversion cycle?

Business

1 answer:

faltersainse [42]3 years ago

4 0

Answer:

C. Cash Conversion Cycle = Production Cycle + Collection Cycle + Payment Cycle

Explanation:

At first glance, it is easy to identify that alternatives A and C are antagonistic meaning that one or the other must NOT be true.

Cash conversion cycle (CCC) describes the amount of days a company requires to convert its investments into cash flows from sales.

Production Cycle and Collection Cycle are both related to assets and thus are positive in the equation for the CCC. The payment cycle is a liability and therefore must be taken as negative in the equation.

The alternative C. Cash Conversion Cycle = Production Cycle + Collection Cycle + Payment Cycle is NOT true

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3 years ago

Which of the following is NOT true of the cash conversion​ cycle?

Which of the following is NOT true of the cash conversion cycle?