Asked by Praveeni Sooriyamudali on Apr 24, 2024
Verified
Provide a definition for the term operating cycle.
Operating Cycle
The duration of time it takes for a company to purchase inventory, sell it to customers, and collect the cash from the sale.
- Detail the processes of the operating cycle and cash cycle, and the way they affect the workings of a business.
Verified Answer
GS
Garry Singh7 days ago
Final Answer :
The time period between the acquisition of inventory and when cash is collected from receivables.
Learning Objectives
- Detail the processes of the operating cycle and cash cycle, and the way they affect the workings of a business.