In a perfect world, a firm would prefer to have a
A)positive operating cycle.
B)negative operating cycle.
C)positive cash conversion cycle.
D)negative cash conversion cycle.
E)none of above are correct

Question

Quizplus · Accepted Answer

A negative cash conversion cycle indicates that a firm is able to collect cash from sales before it needs to pay its suppliers, which is ideal for maintaining liquidity and reducing financing costs.

In a Perfect World, a Firm Would Prefer to Have