10. If a company's account payable period is longer than its operating cycle, then which of...

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10. If a companys account payable period is longer than its operating cycle, then which of the following is most likely to b

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Answer 1

Answer #1

Cash conversion Cycle = Operating cycle- Days Payable outstanding
=Days Inventory Outstanding + Days receivables Outstanding - Days Payable outstanding
If account payable is longer than operating cycle is less than negative
Option c is correct option.

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Answer 2

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