Asked by Amber Koeuth on Jul 22, 2024
Verified
Most firms have a positive cash cycle.
Cash Cycle
The period between the initial investment in inventory and receiving cash from the sale of goods or services, reflecting a company's efficiency and management of working capital.
- Familiarize oneself with the constituents and significance of the cash cycle in business processes.
Verified Answer
SM
Sydney MonseyJul 22, 2024
Final Answer :
True
Explanation :
Most firms have a positive cash cycle because it typically takes time to sell inventory and collect receivables, which are financed by accounts payable and other sources.
Learning Objectives
- Familiarize oneself with the constituents and significance of the cash cycle in business processes.