A major difference exists between a venture's operating cycle and its cash conversion cycle because the conversion cycle includes the time to:
A)buy materials
B)produce a finished good
C)collect sales made on credit
D)pay suppliers for purchases on credit

Question

Quizplus · Accepted Answer

The cash conversion cycle includes the time to pay suppliers for purchases on credit, which is not part of the operating cycle. The operating cycle focuses on the time from buying materials to collecting sales, while the cash conversion cycle accounts for the time taken to pay off suppliers.

A Major Difference Exists Between a Venture's Operating Cycle and Its