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      Question

      The working capital cycle is best defined

      as:
      A Time taken to convert inventory into sales Correct Answer Incorrect Answer
      B Time gap between purchase and cash realization Correct Answer Incorrect Answer
      C Credit period allowed to customers Correct Answer Incorrect Answer
      D Loan repayment schedule Correct Answer Incorrect Answer
      E Time taken to repay creditors Correct Answer Incorrect Answer

      Solution

      The working capital cycle = Inventory + Receivables – Payables period.

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