Which of the following is a measure of the time that it takes to convert current assets into cash?
A)Accounts receivable turnover ratio
B)Cash-to-cash operating cycle
C)Number of days' sales in inventory
D)Working capital

Question

Quizplus · Accepted Answer

The cash-to-cash operating cycle is a measure of the time it takes to convert current assets into cash. It includes the number of days it takes to sell inventory, the number of days it takes to collect accounts receivable, and the number of days it takes to pay accounts payable. The other options are not related to the time it takes to convert current assets into cash.

Which of the Following Is a Measure of the Time