The cash operating cycle is the amount of days between making a sale and collecting money from customers.

Question

Quizplus · Accepted Answer

The cash operating cycle, also known as the cash conversion cycle, measures the time between purchasing inventory and collecting cash from sales, not just the time between making a sale and collecting money from customers. It includes the time to sell inventory and the time to collect receivables, minus the time to pay off its accounts payable.

The Cash Operating Cycle Is the Amount of Days Between