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NEW QUESTION: 1
A manufacturing company is working to improve its cash conversion cycle. Factory production has increased over the last year to increase inventory levels. They have an inventory turnover of
3.1 and asset turnover of 5.0. The company has a days' payable of 30 and a days' receivable of
60. It has started enforcing its net 30 terms and placed customers with balances outstanding more
than 45 days on credit hold. As a result, the company collected receivables quicker but it suffered a 10% loss in sales. What can the company do to reduce its cash conversion cycle?
A. Extend payables deferral period.
B. Revise credit policy to be more lenient.
C. Decrease the days' payable.
D. Pay vendors in advance.
Answer: A
NEW QUESTION: 2
A. Option D
B. Option B
C. Option C
D. Option A
Answer: D
NEW QUESTION: 3
An information security manager is preparing a presentation to obtain support for a security initiative. Which of the following would be the BEST way to obtain management's commitment for the initiative?
A. Include industry benchmarking comparisons.
B. Provide the estimated return on investment.
C. Include historical data of reported incidents.
D. Provide an analysis of current risk exposures.
Answer: D
