The _______ cycle is the length of time between the company's outflow on raw materials and the manufacturing expenses and the inflow of cash from the sale of goods.

Question

Quizplus · Accepted Answer

The operating cycle refers to the time it takes for a company to purchase raw materials, turn them into finished goods, and sell them to customers, and receive payment for those goods. It represents the time it takes for a company to convert its investment in inventory and manufacturing expenses into cash receipts from sales.

The _______ Cycle Is the Length of Time Between the Company's