Which of the following statements is false? O A. A positive cash conversion cycle means the company is paying its payables before receiving its receivables. O B. A negative cash conversion cycle means the company is collecting its receivable before paying its payables. • C. The cash conversion cycle is the length of time required for the company to recieve its inventory and then receive cash from the sales of its inventory. O D. All of the above statements are true.

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Which of the following statements is false?
O A. A positive cash conversion cycle means the company is paying its payables before receiving its receivables.
B. A negative cash conversion cycle means the company is collecting its receivable before paying its payables.
C. The cash conversion cycle is the length of time required for the company to recieve its inventory and then receive cash from the sales of its inventory.
D. All of the above statements are true.
Transcribed Image Text:Which of the following statements is false? O A. A positive cash conversion cycle means the company is paying its payables before receiving its receivables. B. A negative cash conversion cycle means the company is collecting its receivable before paying its payables. C. The cash conversion cycle is the length of time required for the company to recieve its inventory and then receive cash from the sales of its inventory. D. All of the above statements are true.
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