Which of the following elements is required for the calculation of cash conversion cycle?
A) current assets ratio
B) average cost of goods sold
C) average collection period
D) cash flows from operations

Question

Quizplus · Accepted Answer

The calculation of cash conversion cycle requires the average collection period, which is the average number of days it takes for a company to collect payment from customers. The other options listed (current assets ratio, average cost of goods sold, and cash flows from operations) may be relevant to financial analysis but are not specifically needed for the calculation of the cash conversion cycle.

Which of the Following Elements Is Required for the Calculation