Which of the following is not a ratio included in analysis of the operating cycle?
A)Days to collect receivables.
B)Days to buy inventory.
C)Days to pay payables.
D)Days sales in inventory.

Question

Quizplus · Accepted Answer

The operating cycle includes ratios related to the time it takes to collect receivables (A), the time it takes to buy inventory (B), and the time it takes to pay payables (C). Days sales in inventory (D) is not included in the analysis of the operating cycle, as it measures the average number of days that inventory is held before being sold but does not involve the collection of receivables or payment of payables.

Which of the Following Is Not a Ratio Included in Analysis