Question

cycle is a measure of the time delay between a business’ operational activities and the revenue it generates.

• A. Turnover
• B. Cash conversion
• C. Days receivable
• D. Days payable

Answer 1

The correct option is B Cash conversion

Cash conversion cycle is a measure of the time delay between a business’ operational activities and the revenue it generates.
The cash conversion cycle measures the time between the outlay of cash and cash recovery. The shorter the cycle, the more working capital a business generates.