The Operating Cycle Is Defined as the Period of Time

question 148

Multiple Choice

The operating cycle is defined as the period of time between the _____ and the _____.

• A) Payment of an account payable; collection of cash related to that payable.
• B) Purchase; sale of inventory.
• C) Acquisition of inventory; collection of cash from the sale of that inventory.
• D) Sale of a product; collection of payment for that product.
• E) Acquisition of inventory; payment to the supplier of that inventory.