Question

In addition of operating cycle, a variety of factors influence the determination of working capital as:
(A) Nature of Business
(B) Product Policies
(C) Position of Business Cycle
(D) All of thes

Answer 1

Answer:

Option (D) All of these is the correct answer.

Explanation:

Operating cycle method for estimating working capital is based on the duration of the operating cycle. Longer the period of the cycle, bigger will be the working capital requirements. Operating cycle means the cycle of raw material to work in progress to finished goods to accounts payable and finally to cash.

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