单选题 It is the time between 1 materials are ordered and receivables are collected less the time over which payables are outstanding. Of course, if no credit is extended by suppliers, 2 the operating cycle and the cash conversion cycle would be the same. Increases in the cash conversion cycle mean the firm must finance itself for a 3 . period of time. This will increase the firm"s short - term financing needs and financing 4 . Financial managers will want to monitor the cash conversion cycle and 5 action should it begin to lengthen. Shorter cash conversion cycles mean tile firm will reduce its short - term financing needs and financing costs.