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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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Question added by Deleted user
Date Posted: 2013/06/29

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

Vivek Rajgopalan
by Vivek Rajgopalan , SAP FICO Core User , AP Paper Mills Ltd. Rajahmundry, AP

This is True

Habibullah Usman
by Habibullah Usman , General Manager , Venkys Italy Marmo S.r.l.

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
by Naveed Abbas Rana , Accountant/ Consultant , Aboriginal Peoples Television Network

option1: True

Muhammad Afaq
by Muhammad Afaq , SENIOR FINANCIAL ACCOUNTANT , United Eddy Company (United Yousef M. Naghi Group)

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

Idrees Zafar
by Idrees Zafar , Senior Financial Analyst , Bayt.com

True

Mohammad Al-Shayeb
by Mohammad Al-Shayeb , Finance Manager , Syriatel

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.

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

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