Which of the Following Is the Best Description of the Operating

question 64

Multiple Choice

Which of the following is the best description of the operating cycle?

• A) The length of time that it takes to convert raw materials into inventory
• B) The length of time that it takes to convert raw materials into accounts receivable
• C) The length of time to acquire raw materials and receive payment for them when sold
• D) None of the options

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Definitions:

Expected Utility

The anticipated value of an outcome, calculated by multiplying the utility of the outcome by the probability of its occurrence.

Risk-averse

Characterized by the preference to avoid risk, leading individuals or entities to choose the option with the least risk when faced with uncertain outcomes.

Expected Utility

A theory in economics that calculates the anticipated utility or satisfaction from a decision under conditions of uncertainty.

Utility

An indicator of pleasure or contentment obtained by customers from using products or services.