Which of the following statements is not true regarding the cash-to-cash cycle?
A) A common tendency is to focus only on production time when trying to reduce the cash-to-cash cycle, . but in reality, any task in the cycle has the same impact.
B) An important part of the cash-to-cash cycle is known as the make/market or order/deliver loop.
C) The cash-to-cash cycle compares the actual completion of order to its due date and calculates the actual . receipt of the payment when it is sold.
D) Profitability increases as the cash-to-cash cycle is reduced.

Question

Quizplus · Accepted Answer

The cash-to-cash cycle measures the time between when a business pays for its inventory and when it receives payment from its customers, not the comparison of order completion to its due date or the actual receipt of payment when it is sold.

Which of the Following Statements Is Not True Regarding the Cash-To-Cash