Question: Which statement is true of the cash conversion cycle? A. If the days sales outstanding and days inventory remain unchanged, the cash conversion cycle goes

Which statement is true of the cash conversion cycle?

A. If the days sales outstanding and days inventory remain unchanged, the cash conversion cycle goes up if the average inventory goes down.

B. The cash conversion cycle can not be below zero.

C. If the days inventory and payable period remain unchanged, the cash conversion cycle goes down when the days of sales outstanding decreases.

D. The "Payable period" in the formula measures the dollars that are owed by the company's suppliers.

E. The higher the cash conversion cycle, the quicker the company is converting cash it receives from sales into company profits.

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