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What Is a Cash Cycle

Question 4

Multiple Choice

What is a cash cycle?


A) The cash cycle identifies the gap between the time a business pays for raw materials and the time that buyer of the goods produced with those raw materials pays the business for those goods.
B) The cash cycle is the time between the sale of goods and the time that the seller receives payment for the goods.
C) The cash cycle is the time that it takes a seller on credit to collect the amount of the credit sale.
D) The cash cycle is the gap between the time that a business borrows money and the time the borrowed funds are completely repaid.

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