The cash cycle equals the:

Name: The cash cycle equals the:
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The cash cycle is calculated as the operating cycle minus the accounts payable period. The operating cycle includes the time it takes to sell inventory and collect receivables, while the accounts payable period represents the time a company takes to pay its suppliers. Subtracting the accounts payable period from the operating cycle gives the duration in which cash is tied up in the business process.

The Cash Cycle Equals The