# The Cash Conversion Cycle: Definition, Formula & Example

Instructions:

question 1 of 3

### Which component piece of the cash conversion cycle shows improvement if the number of days increases?

Start Your Free Trial To Take This Quiz

As a member, you'll also get unlimited access to over 70,000 lessons in math, English, science, history, and more. Plus, get practice tests, quizzes, and personalized coaching to help you succeed.

It only takes a few minutes to set up and you can cancel at any time.

### 2. If the DPO is greater than the DIO + DSO, what is the result?

Start your free trial to access this entire page
Quizzes, practice exams & worksheets
Certificate of Completion
Create an account to get started

You can assess your understanding of the cash conversion cycle (CCC) with this interactive quiz and printable worksheet. To pass the quiz, you'll need to know the parts of this cycle and the formulas associated with it.

## Quiz & Worksheet Goals

You'll get to check your familiarity with:

• A result of the DPO being greater than the DIO plus DSO
• Calculating the DIO
• A componene of the cycle that shows improvement if the number of days increases
• Calculating the length of the CCC

## Skills Practiced

• Reading comprehension - ensure that you draw the most important information from the lesson on the cash conversion cycle
• Information recall - access the knowledge you have gained about finding days payables outstanding (DPO) and days inventory outstanding (DIO)