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What is meant by an operating cycle?
What is meant by an operating cycle?
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Solution
Operating cycle is the time between the acquisition of assets for processing and their realisation into cash and cash equivalents. Where the operating cycle cannot be identified it is assumed to be of 12 months.
Operating cycle is the time between the acquisition of assets for processing and their realisation into cash and cash equivalents. Where the operating cycle cannot be identified it is assumed to be of 12 months.
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