- CFA Exams
- CFA Level I Exam
- Study Session 11. Corporate Finance (2)
- Reading 35. Working Capital Management
- Subject 1. Managing and Measuring Liquidity
CFA Practice Question
The ______ is the period of time between cash disbursement and cash collection.
B. cash cycle
C. operating cycle
A. accounts payable period
B. cash 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.
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