Match List I with List II
|
LIST I |
LIST II |
|
A. Cash conversion cycle |
I. Total Current Assets |
|
B. Gross working capital |
II. Current Assets |
|
C. Stock |
III. Current liabilities |
|
D. Trade creditors |
IV. Time required to turn purchase into cash receipts from customers |
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 3
The correct answer is option (3) - A-IV, B-I, C-II, D-III
Here's why:
- Cash conversion cycle (CCC): Measures the time it takes for a company to convert its investments in inventory and receivables back into cash from sales. (Matches IV)
- Gross working capital (GWC): Total current assets. (Matches I)
- Stock (Inventory): A component of current assets. (Matches II)
- Trade creditors: Suppliers the company owes money to, a part of current liabilities. (Matches III)