A company should plan the timing of major expenditures in light of its operating cycle.

Name: A company should plan the timing of major expenditures in light of its operating cycle.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

A company's operating cycle refers to the time it takes to convert inventory into cash. Therefore, in order to ensure adequate cash flow and liquidity, it is important for a company to plan the timing of major expenditures in line with its operating cycle.

A Company Should Plan the Timing of Major Expenditures in Light