During the cash conversion period, the firm no longer has the benefit of the financing provided by the supplier.

Name: During the cash conversion period, the firm no longer has the benefit of the financing provided by the supplier.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The cash conversion period is the time it takes for a firm to convert its inventory into cash. During this period, the firm no longer has the benefit of the financing provided by the supplier as it has already received the inventory and must now pay for it in cash.

During the Cash Conversion Period, the Firm No Longer Has