Quiz Ch 15 – Factors Affecting Cash Conversion Cycle
Fundamentals of Financial Management, Concise
Brigham and Houston
09th Edition
Which action would reduce the cash conversion cycle, assuming all other factors remain constant?
Which action would reduce the cash conversion cycle, assuming all other factors remain constant?
Which scenario is the least common reason for a firm to expand its short-term marketable securities holdings?
Which of the following statements regarding financial concepts is accurate?
What should a company explicitly incorporate into its monthly cash budget?
What indicates efficient inventory management in a firm?
In an upward-sloping yield curve, what is the CORRECT strategy for a firm’s emergency marketable securities portfolio?
Based on the provided balance sheet data, what conclusion can be drawn regarding Swim Suits Unlimited’s current asset financing policy?
True or false: If a customer delays its accounts payable but periodically settles the entire balance, it may inconvenience your firm, but it does not pose a genuine financial cost.
True or false: When a profitable firm must extend its accounts payable, it suggests undercapitalization, indicating the need for additional working capital to support operations.
True or false: The cash conversion cycle (CCC), encompassing inventory conversion, receivables collection, and payables deferral, indicates how long a firm finances its working capital. A shorter CCC implies more efficient working capital management, all else being equal.