The working capital cycle is also known by what name?
AInventory turnover
BDebt service cycle
COperating leverage ratio
DCash conversion cycle
Answer & Solution
Correct answer: D. Cash conversion cycle
The time taken to turn net current items into cash is the working capital cycle, called the cash conversion cycle.
Keep practising Working Capital
Browse all Working Capital questions for CA Inter, or explore more Financial Management topics.
Related questions
Single stage inventory calculations look at which scope?Setting a number of days of supply as a coverage target is an example ofWhy should companies keep inventory low when working capital is scarce?Multi-echelon inventory optimization sets stock levelsWhich inventory optimization models use probability distributions for variables?The bullwhip effect in supply chains refers to what?Critics fault the EOQ model mainly for which weakness?Under an all-units discount, price is Rs 50 up to 1,000 units and Rs 45 for 1,001 to 5,000