Which one of the following statements is NOT true?
A) Cash conversion cycle = DSO + DSI - DPO
B) Operating cycle = DSO + DSI
C) a and b
D) None of the above

Question

Quizplus · Accepted Answer

Both statements A and B are true. The cash conversion cycle is calculated as DSO (Days Sales Outstanding) plus DSI (Days Sales of Inventory) minus DPO (Days Payable Outstanding), and the operating cycle is the sum of DSO and DSI.

Which One of the Following Statements Is NOT True