The Time Between Ordering Materials and Collecting Cash from Receivables

question 65

Multiple Choice

The time between ordering materials and collecting cash from receivables is known as the:

• A) operating cycle
• B) cash conversion cycle
• C) accounts receivable period
• D) term payable cycle

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Definitions:

Strategic Objective

A specific goal that an organization aims to achieve, which is designed to be aligned with its overall strategic plan and long-term vision.

Critical Behaviors

The few key areas of activity in which meeting strategic objectives are absolutely necessary.

Location Specificity

The unique attributes and strategic importance of a geographical location in terms of business operations or investments.

Company Specificity

Characteristics or qualities that are unique to a particular company, distinguishing it from its competitors.