The days required for a business to receive inventory, sell the inventory, and collect cash from...

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The days required for a business to receive inventory, sell the inventory, and collect cash from...

The days required for a business to receive inventory, sell the inventory, and collect cash from the sale of the inventory.

Question 6 options:

	Accounts receivable period
	Inventory period
	Operating cycle
	Accounting period

business accounting

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Answer 1

Answer #1

The answer is operating cycle.

It is the average period of time required for a business to make an initial outflow of cash to produce goods, sell them, and collect cash for the goods sold.

Operating Cycle = Day's sales of inventory + Day's sales outstanding

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Answer 2

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