Examlex
Given the equation
,which answer provides the best description of a possible physical situation?
Operating Cycle
The operating cycle is the duration it takes for a business to convert its inventory and other inputs into cash through sales, encompassing the production and sales process.
Accounts Receivable Turnover
A financial metric that measures how frequently a business can convert its accounts receivable into cash over a specific period.
Inventory Turnover
Inventory turnover is a ratio showing how many times a company's inventory is sold and replaced over a period, indicating the efficiency of inventory management.
Operating Cycle
The period between the acquisition of inventory by a business and the collection of accounts receivable generated from the sale of that inventory.
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