All of the following are true except:

		The days inventory held is the maximum allowed days a firm may store inventory before selling it to customers.
		The cash conversion cycle is the normal operating cycle of a firm that consists of buying or manufacturing inventory, with some purchases on credit and the creation of accounts payable, selling inventory, with some sales on credit and the creation of accounts receivable, and colleting the cash.
		The days payable outstanding is the average number of days it takes to pay payables in cash.
		The average collection period helps gauge the liquidity of accounts receivable, the ability of the firm to collect from customers.