Question

What is operating cycle? explain​

Answer 1

Answer:

The operating cycle is the average period of time required for a business to make an initial outlay of cash to produce goods, sell the goods, and receive cash from customers in exchange for the goods. ... Longer payment terms shorten the operating cycle, since the company can delay paying out cash.

Answer 2

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The operating cycle is the average period of time required for a business to make an initial outlay of cash to produce goods, sell the goods, and receive cash from customers in exchange for the goods. ... Longer payment terms shorten the operating cycle, since the company can delay paying out cash

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