IBPS PO General Awareness: Financial Management questions with solutions

Q1. A low Cash Conversion Cycle (CCC) implies:

1. The company has high levels of inventory
2. The company is experiencing cash flow problems
3. The company can convert invested capital into cash quickly
4. The company has a high level of accounts receivable

Answer: The company can convert invested capital into cash quickly

The Cash Conversion Cycle measures the time taken to convert investments in inventory and other resources into cash from sales. A low CCC means the company recovers cash quickly and operates efficiently.