An Operating Cycle

question 41

Multiple Choice

An operating cycle

• A) is twelve months or less in length.
• B) is the average time required for a company to collect its receivables.
• C) is used to determine current assets when the operating cycle is longer than one year.
• D) begins with inventory and ends with cash.

---

Definitions:

Large Corporations

Businesses that operate on a large scale, often across multiple countries, characterized by complex organizational structures and significant market influence.

Small Organizations

Businesses or groups characterized by a limited number of employees, resources, or scale of operations.

Essential Ingredient

A critical or necessary component required for a process or outcome to be successful or complete.

Influence

The capacity to have an effect on the character, development, or behavior of someone or something, or the effect itself.