One item that does not affect the cash conversion cycle is:
A) fixed asset period
B) accounts receivable
C) accounts payable period
D) inventory period

Question

Quizplus · Accepted Answer

The cash conversion cycle measures the time it takes for a company to convert its investments in inventory and other resources into cash. It includes the inventory period, accounts receivable period, and accounts payable period. Fixed asset period refers to the time it takes to acquire and place fixed assets into production, which is not directly related to the conversion of resources to cash. Therefore, A) fixed asset period does not affect the cash conversion cycle.

One Item That Does Not Affect the Cash Conversion Cycle