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      Question

      The time between the acquisition of assets for

      processing and their realization in cash or cash equivalents is called:
      A Operating Cycle Correct Answer Incorrect Answer
      B Working capital limit Correct Answer Incorrect Answer
      C Conversion Cycle Correct Answer Incorrect Answer
      D Working Capital Cycle Correct Answer Incorrect Answer
      E None of the above Correct Answer Incorrect Answer

      Solution

        The time between the acquisition of assets for processing and their realization in cash or cash equivalents is called Operating Cycle. When the operating cycle can not be identified, it is assumed to have a duration of 12 months.

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