Practicing Success

Register
Start Free Mocks
CUETMOCK

Ace Your

CUET Preparation Today

Start Free Mocks
Home Questions GDZTXBJDR7
Target Exam

CUET

Subject

Entrepreneurship

Chapter

Business Arithmetic

Question:
What is the meaning of Cash Conversion Cycle?
Options:
the length of time between a firm's purchase of inventory and the receipt of cash from accounts receivable
It is the time required for a business to turn purchases into cash receipts from customers
Both 1 and 2
Money needed to fund the normal, day to day operations of a business.
Correct Answer:
Both 1 and 2
Explanation:
The cash conversion cycle (CCC or Operating Cycle) is the length of time between a firm's purchase of inventory and the receipt of cash from accounts receivable. It is the time required for a business to turn purchases into cash receipts from customers. CCC represents the number of days a firm's cash remains tied up within the operations of the business.

CUET Questions