Which of the following statements is not correct concerning the elements of the cash conversion cycle time?
A. Lean manufacturers may reduce the total cash conversion cycle time.
B. Effectively managing working capital is important for businesses to survive and profit.
C. The higher the number of days in the cash conversion cycle, the more efficiently the company is managing its cash.
D. The cash conversion cycle measures the average time it takes to convert cash outflows into cash inflows from customers.
E. The cash conversion cycle is based on accounts receivable, accounts payable, and inventory.
Answer: C
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Answer the following statement true (T) or false (F)
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