CUET Preparation Today
| What is the meaning of Cash Conversion Cycle? |
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. |
| Both 1 and 2 |
| 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. |
