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:

Normal Population

A population that follows a normal distribution, characterized by a bell-shaped curve.

Confidence Interval

A spectrum of values obtained from sampled data that is probable to encompass the value of a yet-to-be-determined population parameter.

Standard Deviation

A measure that quantifies the amount of variation or dispersion of a set of data values.

Sleep

A natural, reversible state of reduced responsiveness to external stimuli and diminished activity of the body, essential for physical and mental restoration.