The Cash Cycle Can Be Defined as the Operating Cycle

question 155

Multiple Choice

The cash cycle can be defined as the operating cycle:

• A) Minus the accounts receivable period.
• B) Plus the accounts receivable period.
• C) Minus the accounts payable period.
• D) Plus the accounts payable period.
• E) Plus the inventory period.

---

Definitions:

Consumers

Individuals or groups that purchase goods or services for personal use.

Producers

Entities or individuals that create or supply goods and services.

Minimum Imposed Price

A price floor set by the government, preventing prices from falling below a certain level.

Deadweight Loss

An economic inefficiency that occurs when market equilibrium is not achieved or is distorted, typically due to a price floor, ceiling, or tax.