Which Industry Is Most Apt to Have the Shortest Operating

question 62

Multiple Choice

Which industry is most apt to have the shortest operating cycle?

• A)Toy store
• B)Car manufacturer
• C)Local restaurant
• D)Furniture store
• E)Plastics manufacturer

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Definitions:

Fixed Asset

Long-term tangible property, plant, or equipment that a firm owns and uses in its operations to generate income.

Book Value

The cost of a fixed asset minus accumulated depreciation on the asset.

Unearned Rent

Revenue received by a landlord for rent that has not yet been earned because the rental period has not occurred.

Net Income

The net income of a business once all costs and taxes are subtracted from the total earnings.