Time span during which cash is paid for goods and services which are then sold to customers

Question

Paola Hester

Business

1 December, 19:33

Time span during which cash is paid for goods and services which are then sold to customers

+2

Answers (1)

Know the Answer?

Brenden Wagner · Answer 1

Operating Cycle.

It is the normal timeframe required for a business to influence an underlying expense of money to create to products, offer the merchandise, and get trade from clients out trade for the products.

We can likewise say that it is the quantity of days an organization takes in understanding its inventories in real money. It is same as the time taken in offering inventories in addition to the time taken in recuperating money from exchange receivables.