alleryStart learning →What does the cash conversion cycle measure?
ADays a firm is deprived of cash
BDays before a tax refund arrives
CDays between ordering and delivery
DYears needed to recover a project cost
Answer & Solution
Correct answer: A. Days a firm is deprived of cash
It shows how long cash stays tied up between paying for inventory and collecting from customers.
Keep practising Working Capital
Browse all Working Capital questions for CA Inter, or explore more Financial Management topics.
Related questions
Single stage inventory calculations look at which scope?Setting a number of days of supply as a coverage target is an example ofWhy should companies keep inventory low when working capital is scarce?Multi-echelon inventory optimization sets stock levelsWhich inventory optimization models use probability distributions for variables?The bullwhip effect in supply chains refers to what?Critics fault the EOQ model mainly for which weakness?Under an all-units discount, price is Rs 50 up to 1,000 units and Rs 45 for 1,001 to 5,000