The Operating Cycle of a Business Is Best Defined as Which

question 54

Multiple Choice

The operating cycle of a business is best defined as which of the following?

• A) one year
• B) the length of time over which our plant and equipment assets are expected to be used by the company in generating revenues
• C) the time it takes for a company to purchase and pay for goods or services from suppliers, sell those goods or services to customers and collect cash from the customers
• D) the period of time for which we prepare our financial statements

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Definitions:

Threat

A potential danger or harm that may arise from external or internal factors and impact an individual, organization, or system.

Lawsuit

A legal case brought to a court by one party against another seeking a resolution to a dispute.

Puffery

The practice of making exaggerated, subjective claims about a product or service that cannot be objectively verified, often used in advertising.

Benoit's Theory

A communicative theory proposed by William L. Benoit that focuses on image repair discourse, addressing how individuals or organizations respond to accusations or crises.