Which of the Following Best Describes the Operating Cycle

question 111

Multiple Choice

Which of the following best describes the operating cycle?

• A)It is the length of the manufacturing process.
• B)It is the time that elapses from the purchase of inventory on account to the sale of inventory on account.
• C)It is the time that elapses from the completion of the manufacturing process to the cash collection from sale of the manufactured goods.
• D)It is the time that elapses from the cash payment to suppliers to collection of cash from customers.

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Definitions:

Plants

Plants are multicellular organisms in the kingdom Plantae that use photosynthesis to convert light energy into chemical energy, which fuels their activities and growth.

Starch

Coiled polysaccharide of glucose monomers. Principal form of stored sugars in plants.

Fatty Acid

Organic compound that consists of an acidic carboxyl group “head” and a long hydrocarbon “tail.” Can be saturated or unsaturated.

Hydrophilic

Describes a substance that dissolves easily in water.