The operating cycle of a company is the average time required to collect the receivables resulting from producing revenues.

Name: The operating cycle of a company is the average time required to collect the receivables resulting from producing revenues.
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The operating cycle of a company is the average time it takes from purchasing or acquiring inventory to collecting cash from the sale of the inventory, encompassing both the time to sell the inventory and the time to collect receivables.

The Operating Cycle of a Company Is the Average Time