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:

Existing Schema

A cognitive framework or concept that helps organize and interpret information based on known ideas and experiences.

Mental Pathways

The neural routes in the brain through which information flows and cognitive processes occur, shaping thoughts, emotions, and behaviors.

Priming

A psychological phenomenon where an initial stimulus influences a person's response to a subsequent, related stimulus without conscious guidance.

Stimulus

Any object or event that evokes a sensory or behavioral response in an organism.