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      Question

      Which of the following best describes the Working

      Capital Cycle?
      A Time from cash outflow to cash inflow Correct Answer Incorrect Answer
      B Time taken to repay term loan Correct Answer Incorrect Answer
      C Time to convert profit into cash Correct Answer Incorrect Answer
      D Time taken to issue and collect bills Correct Answer Incorrect Answer
      E Time from purchase order to invoice generation Correct Answer Incorrect Answer

      Solution

      The Working Capital Cycle is the time taken to convert resources (inventory) into cash flows β€” a key liquidity efficiency measure.

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