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Which of the following actions is likely to reduce the length of firm’s cash conversion cycle?

A- Adopting a new inventory system that reduces the inventory conversion period  

B-Adopting a new inventory system that increases the inventory conversion period 

C- Increasing the average day's sales outstanding on its accounts receivable.

D- Reducing the amount of time the firm taken to pay its suppliers. 

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Question added by Ahmed Dawoud , Senior Accountant , HI PROF General Trading & Contracting
Date Posted: 2016/02/14

Adopting a new inventory system that reduces the inventory conversion period

imran Noor -
by imran Noor - , Audit Officer , Auditor General of Pakistan

The correct option is >>>>>>>>>>>>>> (A)

Adopting a new inventory system that reduces the inventory conversion period

Fathi Matbaq
by Fathi Matbaq , Senior Purchasing Officer , Alghanim Industries

D- Reducing the amount of time the firm taken to pay its suppliers.

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