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:

Rental Apartments

Rental apartments are housing units made available for lease to tenants, providing them with a place to live in exchange for regular rent payments.

Local College

An educational institution providing higher education and tertiary education, situated close to the community it serves.

Rental Price

The amount of money charged for leasing or renting a property, such as a house or an apartment.

Supply and Demand

Refers to the economic model that determines the price of goods and services based on sellers' supply and buyers' demand.