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

2 months 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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Virgina

19 days ago

I agree with you, C) 100 days sounds like the correct answer. Let's go with that.

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Francesco

26 days ago

I'm going with B) 90 days. It just feels right to me.

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Krystina

1 months ago

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

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Wynell

2 months 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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Erick

22 days ago

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Winifred

23 days ago

D) 110 days.

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Queen

24 days ago

C) 100 days.

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Ashleigh

25 days ago

B) 90 days.

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Mitsue

1 months ago

A) 26 days.

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Lizbeth

2 months 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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Myra

17 days ago

Exactly, that's why the answer is 90 days.

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Keva

19 days ago

So, we add the days for raw materials and receivables, then subtract the days to pay for materials.

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Lavonne

1 months ago

Yeah, that makes sense. It's all about the cash conversion cycle.

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Merri

1 months ago

I think it's 90 days too.

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Ashley

2 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

2 months ago

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

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Makeda

2 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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