Which of the following is NOT true of the cash conversion cycle?
A) It is the net period from the start of cash outflow for producing a product or service until the associated cash inflow materializes from the sale of that product or service.
B) Cash Conversion Cycle = Production Cycle + Collection Cycle - Payment Cycle
C) Cash Conversion Cycle = Production Cycle + Collection Cycle + Payment Cycle
D) The cash conversion cycle essentially measures how quickly a company can convert its products or services into cash.
Answer: C
Explanation: C) The cash conversion cycle = production cycle + collection cycle - payment cycle
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