1. If AAI or average age of inventory changes from 14 days to 16 days it will decrease the cash conversion cycle.

TRUE OR FALSE

2. If APP, average payment period, changes from 40 days to 36 days this will reduce the cash conversion cycle.

TRUE OR FALSE

3.Decreasing the cash conversion cycle will lower the amount of working capital needed.

TRUE OR FALSE

4. One way to decrease cash conversion cycle would be to change sales terms from Net 40 to Net 30 days.

TRUE OR FALSE

5. An EOQ (economic order quantity) of 41 would mean that I order the item 41 times per year.

TRUE OR FALSE