The ________ of a firm is the amount of time that elapses from the point when the firm makes an outlay to purchase raw materials to the point when cash is collected from bad debt.
A)cash conversion cycle
B)operating cycle
C)average age of inventory
D)average collection period
E)none of the above

Question

Quizplus · Accepted Answer

The correct term should be "cash conversion cycle," but the definition provided incorrectly mentions "cash is collected from bad debt," which is not part of the cash conversion cycle. The cash conversion cycle involves the time taken to convert inventory and other resources into cash flows from sales, not specifically from bad debts.

The ________ of a Firm Is the Amount of Time