A firm's cash conversion cycle is equal to its operating cycle minus its .
A)inventory conversion period
B)receivables conversion period
C)payables deferral period
D)none of these

Question

Quizplus · Accepted Answer

The cash conversion cycle is the time it takes for a firm to convert its resources into cash flows. It is calculated as the sum of the inventory conversion period and the receivables conversion period, minus the payables deferral period. Therefore, the correct answer is C - payables deferral period.

A Firm's Cash Conversion Cycle Is Equal to Its Operating