Which of the Following Statements About an Operating Cycle Is

question 31

Multiple Choice

Which of the following statements about an operating cycle is true?

• A)For all businesses the operating cycle is a year or less.
• B)The operating cycle is useful in defining current assets.
• C)The operating cycle is the difference between revenues and operating expenses.
• D)An operating cycle is the time it takes from the sale of inventory until the collection of cash.

---

Definitions:

HR Projection

The activity of predicting the future human resources requirements to achieve the anticipated levels of business operations.

Competitive Advantage

An attribute or condition that provides a business with a superior stance or leverage against its competitors.

Firm-specific Human Capital

Refers to the unique skills, knowledge, and abilities employees develop that are specifically valuable to their current employer.

Generic Human Capital

The competencies, knowledge, skills, and abilities that are held by individual employees and that are useful to the firm.