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Commerce · Q45

Business Finance

Graduate and Post Graduate · Commerce · question 45

Q45

Which of the following equations gives the amount of operating cycle where, R stands for raw material storage period W for work in progress holding period F for finished goods storage period D for receivables (debtors) collection period C for credit period allowed by suppliers (creditors)?

A.
R + W + F + D - C
Answer
B.
R + W + F + D + C
C.
R + W - F + D - C
D.
R + W + F - D - C

Answer: Option A

Solution

Answer: Option A
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