IIA Exam IIA-ACCA Topic 8 Question 93 Discussion

Actual exam question for IIA's IIA-ACCA exam

Question #: 93
Topic #: 8

An organization requires an average of 58 days to convert raw materials into finished products to sell. An average of 42 additional days is required to collect receivables. If the organization takes an average of 10 days to pay for the raw materials, how long is its total cash conversion cycle?

A26 days.

B90 days.

C100 days.

D110 days.

Show Suggested Answer

Suggested Answer: B

by Leota at Dec 10, 2024, 07:53 AM

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Slyvia

16 days ago

This question is giving me flashbacks to that time I tried to balance my checkbook using a protractor and a bag of Cheetos. Anyway, I'm gonna have to go with C) 100 days. It's a nice, round number, and it makes me feel like I'm part of the 'Hundred Club' or something. Hey, at least I'm not the one who picked 110 days, right?

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Krystina

2 days ago

I think the answer is A) 26 days. It seems like the most reasonable choice.

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Wynell

19 days ago

I'm going to have to go with D) 110 days. Why? Because I like the sound of that number. It just feels more ... substantial, you know? Plus, who doesn't love a triple-digit answer? It's got that 'I'm-a-financial-wizard' vibe to it.

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Mitsue

4 days ago

A) 26 days.

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Lizbeth

26 days ago

Hmm, I'm not sure about this one. Let me think it through... Okay, got it! The total cash conversion cycle is the sum of the days to convert raw materials and collect receivables, minus the days to pay for raw materials. That makes B) 90 days the correct answer. Easy peasy!

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Merri

7 days ago

I think it's 90 days too.

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Ashley

1 months ago

I agree with Thurman, the answer is C) 100 days because we need to add up the days for raw materials conversion, receivables collection, and payment.

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Belen

1 months ago

I'm not sure, but I think we need to calculate the total cash conversion cycle first.

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Makeda

1 months ago

The answer is clearly A) 26 days. It's just basic arithmetic - 58 days to convert raw materials, plus 42 days to collect receivables, minus 10 days to pay for raw materials. Anyone who can't figure that out probably shouldn't be taking this exam.

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