The ________ of a firm is the amount of time that elapses from the point when the firm makes an outlay to purchase raw materials to the point when cash is collected from receivable.
A) cash conversion cycle
B) operating cycle
C) average age of inventory
D) average collection period

Question

Quizplus · Accepted Answer

The operating cycle of a firm refers to the duration from the initial investment in inventory and resources to the collection of payment from customers for goods or services sold, encompassing both the process of selling the inventory and collecting the receivables.

The ________ of a Firm Is the Amount of Time