The Difference Between a Firm's Operating Cycle and Its Cash

question 11

Multiple Choice

The difference between a firm's operating cycle and its cash cycle is:

• A)there is no difference between the cash and operating cycles.
• B)its account receivable days.
• C)its accounts payable days.
• D)its inventory days.

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Definitions:

Probability Distribution

A computation in statistics identifying each possible outcome and its probability for a random variable within a specified range.

Investment's Risk

The potential for losing money or not achieving the expected return on an investment due to various factors like market volatility.

Distribution of Returns

The way in which the earnings from an investment are paid out or reinvested.

Portfolio's Value

The total worth of all the investments held in an individual's or entity's investment portfolio.