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NBAA CPA Intermediate Practice Questions - NBAA Certified Public Accountant (CPA) Intermediate Level Exam

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A manufacturing company in Arusha has an average inventory holding period of 45 days, an average receivables collection period of 30 days, and an average payables payment period of 40 days. What is the length of the company's cash conversion cycle (net operating cycle)?
Correct Answer:
35 days

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