The difference between a company's operating cycle and its net operating cycle is:

A$.$ the number of days that it takes, on average, for the company to sell its inventory.

B$.$ the number of days that it takes the company to pay on the accounts due its suppliens.

C$.$ the number of days that it takes for the company's cash investment in inventory to result in cash collections from customers.

The net operating cycle is:

A$.$ inversely related to a company's need for liquidity.

B$.$ the length of time it takes for an investment in inventory to be returned from col$-$

C$.$ the sum of the number of days of inventory and the number of days of receivables, lected accounts. less the number of days of payables.

A measure of the extent to which a company is able to satisfy its short$-$term obligations is referred to as:

A$.$ a liquidity ratio.

B$.$ an activity ratio.

C$.$ a financial leverage ratio.