The cash cycle is the ________ between when a firm pays for its inventory and when it receives cash from the sale of its product.
A) average time
B) minimum time
C) maximum time
D) delayed time

Question

Quizplus · Accepted Answer

The cash cycle is the average time between when a firm pays for its inventory and when it receives cash from the sale of its product. This time period includes the time it takes to sell the inventory and collect the cash from customers. It is important for companies to manage their cash cycle effectively to ensure they have enough cash on hand to meet their operational and financial obligations.

The Cash Cycle Is the ________ Between When a Firm