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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 тАУ Payables period.

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