- CFA Exams
- CFA Level I Exam
- Topic 3. Corporate Issuers
- Learning Module 4. Working Capital and Liquidity
- Subject 1. Cash Conversion Cycle
CFA Practice Question
The ______ is the period of time between cash disbursement and cash collection.
B. cash conversion cycle
C. operating cycle
A. accounts payable period
B. cash conversion cycle
C. operating cycle
Correct Answer: B
The operating cycle is the amount of time that elapses between when inventory is received and when payment is received for the sale of inventory. It is different from cash conversion cycle.
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