If a Company's Operating Cycle Is Much Longer Than Its

question 178

True/False

If a company's operating cycle is much longer than its average payment period for suppliers, it creates the need to borrow money to fund its inventories and accounts receivable.

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Definitions:

Homeowner's Insurance

A type of property insurance that covers damages and losses to an individual's house and assets in the home, providing liability coverage against accidents in the home or on the property.

Burglarized

The act of illegally entering a building with intent to commit theft.

Policy Cover

The extent of protection provided by an insurance policy against specific risks or occurrences.

Theft

In criminal law, knowingly taking or obtaining control over the property of another without consent, using deceit, threats, or coercion.