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.

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Definitions:

Games-Of-Chance

Activities in which outcomes are determined primarily by random factors, usually for gambling or entertainment purposes.

Oligopoly Behavior

Market behavior characterized by a small number of firms dominating a market, where each firm's decisions impact the others, often leading to strategic pricing and output decisions.

Sequential Game

A strategic interaction (game) between two or more parties (players) in which each party moves (makes a decision) in a predetermined order (sequence).

Second Mover

A strategy where a firm enters a market or releases a product after competitors have already established themselves, potentially benefiting from the first mover's market insights and errors.