1.Compared to the prior period, a firm has greater days of receivables. The effect on the firm’s cash conversion cycle and operating cycle are most likely a(n):
| Cash conversion cycle
| Operating cycle
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A) Increase Decrease B) Decrease Increase C) Decrease Decrease D) Increase Increase
2.Compared to the prior year, Chart Industries has reported that its operating cycle has remained relatively stable while its cash conversion cycle has decreased. The most likely explanation for this is that the firm:
A) is relying more on its suppliers for short-term liquidity. B) is paying its bills for raw materials more rapidly. C) has improved its inventory turnover. D) has relaxed its credit policies to increase sales.
3.An analyst who is evaluating a firm’s working capital management would be least likely to be concerned if the firm’s:
A) trade payables turnover is lower than that of its peers. B) total asset turnover is lower than its industry average. C) days of inventory on hand is higher than the industry average. D) operating cycle is shorter than that of its peers. | 
发表于 2008-4-9 10:02
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