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The Operating Cycle for Desert Filings Ltd Was 107

Question 25

Multiple Choice

The operating cycle for Desert Filings Ltd was 107.6 days in the year ended 31 December 20X4, compared with 102.7 days in the previous year.Which of the following statements are correct? A The operating cycle has improved in the year ended 31 December 20X4 compared with the previous year
B A longer operating cycle indicates that inventory is being held, on average, for a longer period.


A) Both of them
B) A only
C) B only
D) Neither of them

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