Abbot Corporation has an average collection period of 49 days,an inventory conversion period of 83 days,and a payables deferrable period of 36 days.What is Abbott's cash conversion cycle?
A)96 days
B)70 days
C)85 days
D)132 days

Question

Quizplus · Accepted Answer

The cash conversion cycle is calculated as the inventory conversion period plus the average collection period minus the payables deferral period: 83 + 49 - 36 = 96 days.

Abbot Corporation Has an Average Collection Period of 49 Days,an