1. The cash conversion cycle is the length of time from the __________ raw mater
ID: 2766900 • Letter: 1
Question
1. The cash conversion cycle is the length of time from the __________ raw materials to manufacture a product until the __________ of accounts receivable associated with the sale of the product.
a.
ordering of; creation
b.
ordering of; collection
c.
payment for; creation
d.
payment for; collection
e.
none of the above
2. The average length of time required to convert materials into finished products and sell that product is called the __________.
a.
cash conversion cycle
b.
inventory conversion period
c.
receivables collection period
d.
payables deferral period
e.
days sales outstanding
3. The average length of time required to convert a firm's receivables into cash is called the __________.
a.
cash conversion cycle
b.
inventory conversion period
c.
receivables collection period
d.
payables deferral period
e.
days sales outstanding
4. The average length of time between the purchase of raw material and labor and the payment of cash for them is called the __________.
a.
cash conversion cycle
b.
inventory conversion period
c.
receivables collection period
d.
payables deferral period
e.
days sales outstanding
a.
ordering of; creation
b.
ordering of; collection
c.
payment for; creation
d.
payment for; collection
e.
none of the above
Explanation / Answer
1. The cash conversion cycle is the length of time from the payment for raw materials to manufacture a product until the collection of accounts receivable associated with the sale of the product. 2. The average length of time required to convert materials into finished products and sell that product is called the cash conversion cycle. 3. The average length of time required to convert a firm's receivables into cash is called the receivables collection period. 4. The average length of time between the purchase of raw material and labor and the payment of cash for them is called the payables deferral period.
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