The Net Operating Cycle Represents _______

question 16

Multiple Choice

The net operating cycle represents _______.

• A)the gross operating cycle reduced by accounts payable turnover days, the amount of time that an entity's customers will let it use trade credit before requiring payment for goods and services
• B)the gross operating cycle reduced by accounts receivable turnover days, the amount of time that an entity's suppliers will let it use trade credit before requiring payment for goods and services
• C)the gross operating cycle reduced by accounts payable turnover days, the amount of time that an entity's suppliers will let it use trade credit before requiring payment for goods and services
• D)the gross financing cycle reduced by accounts payable turnover days, the amount of time that an entity's suppliers will let it use trade credit before requiring payment for goods and services

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Definitions:

Means

The average values obtained by dividing the sum of all observations by the number of observations.

Bootstrapping Process

A statistical resampling method used to approximate the distribution of a statistic by repeatedly sampling with replacement from the observed data.

Standard Deviation

A measure of the amount of variation or dispersion of a set of values, represented by the square root of the variance.

Sampling Distribution

A statistical distribution of all possible sample means or proportions, given a sample size, from a population.