The cash conversion period is the time between _____ and _____.
A) cash payment for inventory; collection of accounts receivable
B) placement of an order; cash payment for it
C) receipt of inventory; cash payment for it
D) sale of inventory; cash collection of accounts receivable

Question

Quizplus · Accepted Answer

The cash conversion period is the time between when a company pays cash for its inventory and when it collects cash from the sale of that inventory, encompassing the entire cycle of purchasing inventory, selling it, and collecting the receivables.

The Cash Conversion Period Is the Time Between _____ and _____

The Cash Conversion Period Is the Time Between _ and _