Which of the Following Statements About a Company's Operating Cycle

question 71

Multiple Choice

Which of the following statements about a company's operating cycle is not true:

• A)Non-current items are those expected to come due within one year or the company's operating cycle.
• B)The operating cycle is the time span from when cash is used to acquire goods and services until cash is received from the sale of goods and services.
• C)The length of a company's operating cycle depends on its activities.
• D)For a merchandiser selling products,the operating cycle is the time span between paying suppliers for merchandise and receiving cash from customers.
• E)Most operating cycles are less than one year.

---

Definitions:

Corporate Advertising

A marketing strategy aimed at promoting a company as a whole, rather than its individual products or services, to build the corporate image and reputation.

Proctor & Gamble

A multinational consumer goods corporation specializing in a wide range of personal health/consumer health, and personal care and hygiene products.

Trade Advertising

Advertising aimed at professionals within a specific industry rather than the general public, to promote goods and services within that industry.

Woodworking Industry

Sector focused on the process of making items from wood, encompassing cabinet making, carpentry, and woodturning.