Question
If the Days in Receivables is 30 days and the Days in Inventory is 10 days, what should be the maximum value of the Days
If the Days in Receivables is 30 days and the Days in Inventory is 10 days, what should be the maximum value of the Days in Accounts Payable to keep company safe in working capital management.
a.
20 days
b.
30 days
c.
10 days
d.
40 days
If the company records an increase in Days in Accounts Payable, decrease in Days in Receivables and decrease in Days in Inventory, this leads Cash Conversion Cycle to be worse.
Select one:
True
False
If the company records a decrease in Accounts Payable Turnover, this shows the weakness of the managers in accounts payable management.
Select one:
True
False
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