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 the sale of the finished good.
A) cash turnover
B) cash conversion cycle
C) average age of inventory
D) average collection period

Question

Quizplus · Accepted Answer

The definition provided in the question is describing the cash conversion cycle, which represents the length of time it takes for a company to convert its investments in inventory and other resources into cash flows from sales. Choices A, C, and D are not accurate descriptions of this concept.

The ________ of a Firm Is the Amount of Time