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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 тИТ Payable Days = 120 тИТ 40 = 80 days.

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