What is ‘Operating Cycle’? Post category:Accountancy Reading time:1 mins read SOLUTION ‘Operating Cycle’ is the time between the acquisition of assets for processing and their realisation in Cash and Cash Equivalents. Please Share This Share this content Opens in a new window X Opens in a new window Facebook Opens in a new window Pinterest Opens in a new window LinkedIn Opens in a new window Viber Opens in a new window VK Opens in a new window Reddit Opens in a new window Tumblr Opens in a new window Viadeo Opens in a new window WhatsApp Read more articles Previous PostHow are the assets and liabilities of a Company usually marshalled? Next PostIn case Operating Cycle cannot be determined, what is the time period of operating cycle assumed? You Might Also Like On dissolution of a firm, where is cash in hand transferred? September 27, 2022 What is the nature of Interest on Debentures? September 29, 2022 A firm normally has trade Receivables equal to two months’ credit Sales. During the coming year it expects Credit Sales of Rs. 7,20,000 spread evenly over the year (12 months). What is the estimated amount of Trade Receivables at the end of the year? August 16, 2022 Leave a Reply Cancel replyYou must be logged in to post a comment.
A firm normally has trade Receivables equal to two months’ credit Sales. During the coming year it expects Credit Sales of Rs. 7,20,000 spread evenly over the year (12 months). What is the estimated amount of Trade Receivables at the end of the year? August 16, 2022