Reference no: EM13828220

Problem:

1. The cash conversion cycle as conventionally computed must be a number greater than or equal to zero.

True or False

2. The cash conversion cycle is calculated as: 

1. Days in Inventory + Collection Period 
2. Days in Inventory - Payables Period 
3. Days in Inventory + Collection Period + Payables Period 
4. None of the above

Additional Information:

These two objective questions is from Finance and they deal with cash conversion cycle must be greater than or equal to zero and the second question is about how to determine cash conversion cycle.