Asked by Sydney Henke on Jun 04, 2024

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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.
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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.