The Operating Cycle Is the Recurring Transition of a Firm's

question 244

True/False

The operating cycle is the recurring transition of a firm's working capital from cash to inventories and inventories to receivables and back to cash.

---

Definitions:

Trust's Purpose

The specific objectives or intentions for which a trust is established, guiding how the trust's assets are to be managed and used.

Constructive Trust

An equitable remedy resembling a trust, imposed by a court in order to benefit a party that has been unjustly enriched at another's expense, even though no actual trust has been created by the parties.

Legal Title

The formal right of ownership of property, recognized and protected by law, which may not necessarily entail the possession or use of the property.

Resulting Trust

A trust law concept that arises when one person holds the title to property under circumstances suggesting that he or she should not enjoy the full beneficial interest in the property.