alleryStart learning →Owing cash to disbursing cash is which conversion period?
APayables conversion period
BOperating cycle period
CReceivables conversion period
DInventory conversion period
Answer & Solution
Correct answer: A. Payables conversion period
The gap between incurring a payable and actually paying it is the payables conversion period.
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