Asked by Sydney Henke on Jun 04, 2024
Verified
The cash conversion cycle is the time it takes to convert a receivable into cash.
Cash Conversion Cycle
The cash conversion cycle measures the time it takes for a company to convert resource inputs into cash flows, indicating the efficiency of managing inventory and receivables.
Receivable into Cash
The process or activity of converting money that is owed to a company by its customers into actual cash, usually through collection efforts.
- Comprehend the principles and practical aspects of the cash conversion cycle.
Verified Answer
ZK
Zybrea KnightJun 05, 2024
Final Answer :
False
Explanation :
The cash conversion cycle is actually the time it takes for a company to convert raw materials into cash through the sale of finished products. It includes the time it takes to sell inventory, collect receivables, and pay suppliers.
Learning Objectives
- Comprehend the principles and practical aspects of the cash conversion cycle.
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