The formula to calculate the Cash conversion cycle is:
A . Cash Conversion Cycle = (Cash conversion period) + (Receivables conversion period) C (Payable deferral period)
B . Cash Conversion Cycle = (Inventory conversion period) + (payables conversion period) C (receivables deferral period)
C . Cash Conversion Cycle = (Receivables conversion period) + (Payable deferral period) – (Inventory conversion period)
D . Cash Conversion Cycle = (Inventory conversion period) + (Receivables conversion period) C (Payable deferral period)
Answer: D
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