The formula to calculate the Cash conversion cycle is:
A) Cash Conversion Cycle = (Cash conversion period) + (Receivables conversion period) - (Payable deferral period)
B) Cash Conversion Cycle = (Inventory conversion period) + (payables conversion period) - (receivables deferral period)
C) Cash Conversion Cycle = (Receivables conversion period) + (Payable deferral period) - (Inventory conversion period)
D) Cash Conversion Cycle = (Inventory conversion period) + (Receivables conversion period) - (Payable deferral period)
Correct Answer:
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