The Operating Cycle Is Typically Defined as the Time It

question 53

Multiple Choice

The operating cycle is typically defined as the time it requires to convert

• A)cash to inventory to receivables
• B)raw materials to finished goods
• C)finished goods to receivables to cash
• D)cash to inventory to receivables to cash

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Definitions:

Efficiency Standpoint

A perspective from which actions are evaluated based on their ability to achieve the highest output with the least waste of resources.

Economic Action

Any decision or behavior by individuals or organizations that involves the generation, distribution, and consumption of goods and services.

Costs

The value of resources sacrificed to achieve a particular objective, such as producing goods or services.

Benefits

Forms of value, such as financial support, goods, or services, provided to individuals or organizations, typically as part of employment or governmental support.