Which of the Following Types of Businesses Might Have an Operating

question 17

Multiple Choice

Which of the following types of businesses might have an operating cycle longer than one year?

• A)Ski resort.
• B)Clothing retailer.
• C)Florist.
• D)Wheat farmer.
• E)Commercial airplane manufacturer.

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Definitions:

Financing Activity

Transactions involving changes in equity and long-term liabilities on the company's balance sheet, such as issuing shares, taking out loans, or paying dividends.

Operating Cycle

The duration of time from the purchase of raw materials to the collection of receivables resulting from sales.