Cash cycle = days sales in receivables + days sales in inventory – days purchases in payables. Is this true or false?

Question

Saqib Sohai Butt · Answer

True ie.
Current assets- Current liabilities Also known as working capital cycle

Vivek Rajgopalan · Answer

This is True

Habibullah Usman · Answer

True.
Cash Conversion cycle = no.
of days between disbursing cash and collecting cash in connection with undertaking a discrete unit of operations.
Inventory conversion period + Receivables conversion period - Payables conversion period

Naveed Abbas Rana · Answer

option1: True

Muhammad Afaq · Answer

option1: True It is also know as Cash Conversion Cycle.
A very useful measure of overall internal liquidity of a company.

Idrees Zafar · Answer

True

Mohammad Al-Shayeb · Answer

It is true, "Cash Cycle" or "Cash Conversion Cycle"  whatever are same to measure the required period for cash which is tied up in the production and sales process before it is converted into cash through sales to customers.

مستخدم محذوف‎ · Answer

True..
Cash cycle = normal operating cycle - accounts payables

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Cash cycle = days sales in receivables + days sales in inventory – days purchases in payables. Is this true or false?

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