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      Question

      If company's operating cycle (inventory days +

      receivables days) = 120 days and payables days = 40 days, cash conversion cycle = ?
      A 80 days Correct Answer Incorrect Answer
      B 160 days Correct Answer Incorrect Answer
      C 40 days Correct Answer Incorrect Answer
      D 120 days Correct Answer Incorrect Answer

      Solution

      Cash Conversion Cycle (CCC) = Inventory Days + Receivable Days โˆ’ Payable Days = 120 โˆ’ 40 = 80 days.

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