The difference between a firm's operating cycle and its cash cycle is:
A)there is no difference between the cash and operating cycles.
B)its accounts receivable days.
C)its accounts payable days.
D)its inventory days.

Question

Quizplus · Accepted Answer

The difference between the operating cycle and the cash cycle is the accounts payable days, as the cash cycle subtracts the time the firm takes to pay its suppliers from the operating cycle.

The Difference Between a Firm's Operating Cycle and Its Cash