The cash conversion cycle (CCC)is defined as:
A)Inventory Days + Accounts Receivable Days - Accounts Payable Days.
B)Inventory Days - Accounts Receivable Days - Accounts Payable Days.
C)Inventory Days + Accounts Receivable Days + Accounts Payable Days.
D)Inventory Days + Accounts Payable Days - Accounts Receivable Days.

Question

Quizplus · Accepted Answer

The cash conversion cycle (CCC) is calculated as Inventory Days + Accounts Receivable Days – Accounts Payable Days. This metric is used to measure the time it takes for a company to convert its investments in inventory and other resources into cash flow from sales.

The Cash Conversion Cycle (CCC)is Defined As