A major difference between a venture's operating cycle and the cash conversion cycle is the conversion cycle includes the time to:
A) buy materials
B) produce a finished good
C) collect sales made on credit
D) pay suppliers for purchases on credit

Question

Quizplus · Accepted Answer

The cash conversion cycle includes the time it takes to pay suppliers for purchases on credit, which is not part of the operating cycle. The operating cycle focuses on the time from buying materials to collecting sales revenue.

A Major Difference Between a Venture's Operating Cycle and the Cash