The cash conversion cycle is the time between:

Question

Quizplus · Accepted Answer

The cash conversion cycle is a measure of the time it takes a company to convert its investments or inventories into cash flows. It starts with the cash paid for inventory and ends with the collection of accounts receivable. Therefore, option A is the correct answer. Option B is incorrect because it doesn't involve inventory or accounts receivable. Option C is incorrect because it only involves the receipt of inventory, not the collection of accounts receivable. Option D is incorrect because it only involves the sale of inventory, not the payment for it.

The Cash Conversion Cycle Is the Time Between