An Entity's Net Operating Cycle Represents _______

question 154

Multiple Choice

An entity's net operating cycle represents _______.

• A)the time from using cash to purchasing goods or services to collecting cash from the sale of goods or services
• B)the time from receiving cash to purchasing goods or services to collecting cash from the sale of goods or services
• C)the time from using cash to selling goods or services to collecting cash from the sale of goods or services
• D)the time from using cash to purchase property, plant, and equipment to collecting on the sale of receivables.

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Definitions:

Promissory Note

An economic tool involving a formal commitment from one entity to another to remit a specific amount of cash, payable either upon request or on a predetermined date in the future.

Third-party Complaint

A legal document filed in a lawsuit by a defendant who believes that a third party (not currently involved in the lawsuit) is partially or fully responsible for the claim filed by the plaintiff.

Counterclaim

A claim made by a defendant in a civil lawsuit against the plaintiff, essentially acting as a counter-lawsuit within the same proceeding.

Electronically Stored Information

Information created, stored, or utilized in digital form that can be significant in legal investigations or litigation.