A Firm's Operating Cycle Is Equal to Its ______

question 5

Multiple Choice

A firm's operating cycle is equal to its ______.
I. inventory conversion period plus receivables conversion period
II. cash conversion cycle minus payables deferral period

• A) Only statement I is correct.
• B) Only statement II is correct.
• C) Both statements I and II are correct.
• D) Neither statement I nor II is correct.

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Definitions:

Very High

A term often used in statistics and research to describe data points or values that are significantly above the average or expected range.

Very Low

Refers to a quantitative or qualitative measure indicating a minimal level or degree of something.

About Average

A term used to describe a value or performance that is considered to be typical or within the middle range of a dataset or comparative group.

Central Tendency

A statistical measure to determine the single value that best represents the center of a data distribution, such as the mean, median, or mode.