The Operating Cycle of a Company Is the Average Time

question 169

Multiple Choice

The operating cycle of a company is the average time that is required to go from cash to

• A) sales in producing revenues.
• B) cash in producing revenues.
• C) inventory in producing revenues.
• D) accounts receivable in producing revenues.

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Definitions:

Chitin

A long-chain polymer of N-acetylglucosamine, a derivative of glucose, which forms a major component in the exoskeletons of arthropods and the cell walls of fungi.

Saprotrophy

The process or mode of nutrition that involves organisms feeding on decaying organic matter, breaking it down into simpler substances.

Saprotrophic

Describing organisms, often fungi and bacteria, that feed on and decompose dead organic matter.

Dead Organic Matter

The remains of once-living organisms, including plants, animals, and their waste products, which decompose and recycle nutrients.