Read the following statements comments whether the statement is true or not. If statement is not true than write the correct statement.

The cash conversion cycle (CCC) combines three factors: The inventory conversion period, the receivables collection period, and the payables deferral period, and its purpose is to show how long a firm must finance its working capital. Other things held constant, the shorter the CCC, the more effective the firm's working capital management.

First write True or False - then report your answer in the next line.