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:

Persuade

The act of influencing or convincing someone to do or believe something through reasoning or the use of temptation.

Orderly Progression

A systematic and sequenced development or process, ensuring a logical flow from one stage to the next.

Reasoning

The mental process of drawing conclusions, making predictions, or solving problems based on logical thinking and evidence.

Topic Selection

The process of deciding on a subject matter or theme to be discussed, studied, or written about.