Which firm policy directly affects the cash conversion cycle by governing sales on credit?
ACredit policy
BDividend policy
CHedging policy
DTax policy
Answer & Solution
Correct answer: A. Credit policy
Credit policy covers buying and selling on cash or credit, which changes the cash conversion cycle.
Keep practising International Working Capital Management
Browse all International Working Capital Management questions for CA Final, or explore more Strategicfinancialmanagement topics.
Related questions
In a multilateral net settlement system, how does each participant settle?What is the primary objective of netting in financial markets?When does close-out netting normally operate?What does positive pay reduce?What does a lockbox service help a company do?Which bank service moves surplus balances into a money market fund overnight?Which technique converts debtors to cash in short-term financing?Working capital decisions generally cover what time horizon?