A venture's operating cycle is the same as its cash conversion cycle.

Name: A venture's operating cycle is the same as its cash conversion cycle.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The operating cycle is the time it takes for a company to receive inventory, sell the inventory, and collect payment from customers. The cash conversion cycle, on the other hand, includes the additional time it takes to pay suppliers for the inventory purchased. Therefore, the cash conversion cycle is longer than the operating cycle.

A Venture's Operating Cycle Is the Same as Its Cash