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Operating cycle

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(Querist)
01 March 2022 I know how to classify assets and liabilities on basis of operating cycle but I want to know why operating cycle is used as a parameter to classify wether assets/liabilities are long term or short term ?
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Bhaskaran Chackrapani Warrier

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Bhaskaran Chackrapani Warrier (Expert)
03 March 2022 Because it is a rational benchmark.

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