Which of the following is a firm\'s cash cycle? Select one: a. the average lengt

Question

Which of the following is a firm's cash cycle?

Select one:

a. the average length of time between when a firm originally purchases its inventory and when it receives the cash back from selling its product

b. the average length of time between when a firm pays cash to purchase its initial inventory and when it receives cash from the sale of the product produced from that inventory

c. the average length of time between when a firm pays cash to purchase its initial inventory and when it sells that product

d. the average length of time between when a firm originally purchases its inventory and when it sells the product produced from that inventory

Explanation / Answer

The Answer is "a"

Meaning of Cash Cycle is the

average length of time between when a firm originally purchases its inventory and when it receives the cash back from selling its product.

Flow of cash that begins with payment for Inventory and ends with the receipt of cash on goods sold.

Related Questions

Navigate

• Browse (All)
• Browse W
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.