The goal of the cash conversion cycle is to convert paid-for inventory and accounts receivables into cash as quickly as possible.

Name: The goal of the cash conversion cycle is to convert paid-for inventory and accounts receivables into cash as quickly as possible.
Brand: Quizplus
Rating: 4.8 (55 reviews)

Question

Quizplus · Accepted Answer

The cash conversion cycle measures how long it takes a company to convert its investment in inventory and accounts receivable into cash, so the goal is to shorten this cycle and convert those assets into cash as quickly as possible.

The Goal of the Cash Conversion Cycle Is to Convert