Answer to Question #53150 in Accounting for Alina

Question

On average, what is the minimum length of two Wheeler's operating cycle? The maximum length?

Answer 1

At the microlevel, the operating cycle, which indicates the speed and turnover of corporate cash flow, also influences the corporate cash-holding strategy. Firms flexibly adjust their cash-holding strategies in response to changes in the internal and external environment, which is referred to as the cash adjustment strategy.