A firm's cash cycle cannot be greater than a firm's operating cycle.

Name: A firm's cash cycle cannot be greater than a firm's operating cycle.
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Question

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The cash cycle is the time it takes for a firm to convert its inventory into cash. The operating cycle is the time it takes for a firm to complete one cycle of operations, from the purchase of raw materials to the sale of finished goods. The cash cycle cannot be greater than the operating cycle because the cash cycle is a part of the operating cycle.

A Firm's Cash Cycle Cannot Be Greater Than a Firm's