Asked by Jason Rosete on Jul 12, 2024
Verified
Selling inventory slower will shorten the cash cycle.
Cash Cycle
Refers to the amount of time it takes for a company to convert its investments in inventory and other resources into cash flows from sales.
Selling Inventory
The process of selling goods and products that a company holds in stock, often a major revenue source.
- Gain insight into the components and value of the cash cycle in commercial operations.
Verified Answer
GN
Gloria NewsomeJul 18, 2024
Final Answer :
False
Explanation :
Selling inventory slower will lengthen the cash cycle because it takes more time to convert inventory into cash.
Learning Objectives
- Gain insight into the components and value of the cash cycle in commercial operations.