A firm can reduce its cash conversion cycle

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Reference no: EM13941929

a) The aggressive funding strategy is a strategy by which a firm finances all projected funds requirements with long-term funds and uses short-term financing only for emergencies or unexpected outflows.

A) True

B) False

b) The ____ of a firm is the amount of time required for a company to convert cash invested in its operations to cash received as a result of its operations.

A) Cash conversion cycle

B) Cash turnover

C) Average collection period

D) Average age of inventory

c) A firm can reduce its cash conversion cycle by _____.

A) Increasing the operating cycle

B) Increasing the average collection period

C) Increasing the average age of inventory

D) Increasing the average payment period

Reference no: EM13941929

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