The period of time during which either liquidity reserves or external funding is needed to maintain company operations is called the:
A) Accounts payable period.
B) Operating cycle.
C) Cash cycle.
D) Accounts receivable period.
E) Inventory period.

Question

Quizplus · Accepted Answer

The cash cycle refers to the period of time during which a company needs either liquidity reserves or external funding to maintain its operations. It measures the time between when a company pays for its inventory and when it receives cash from selling its products or services, thus highlighting the need for liquidity or external financing during this period.

The Period of Time During Which Either Liquidity Reserves or External