The cash conversion cycle
A) shows how long the firm keeps its inventory before selling it.
B) begins when the firm invests cash to purchase the raw materials that would be used to produce the goods that the firm manufactures.
C) begins when the firm uses its cash to purchase raw materials and ends when the firm collects cash payments on its credit sales.
D) estimates how long it takes on average for the firm to collect its outstanding accounts receivable balance.
Answer: B
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