The Operating Cycle of a Business Is Best Defined as Which

question 81

Multiple Choice

The operating cycle of a business is best defined as which of the following?

• A) the period of time for which we prepare our financial statements
• B) the length of time over which our plant and equipment assets are expected to be used by the company in generating revenues
• C) the time it takes for a company to purchase and pay for goods or services from suppliers, sell those goods or services to customers and collect cash from the customers
• D) one year

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Definitions:

Congress

The legislative branch of the United States government, divided into the Senate and the House of Representatives.

Federal Troops

Military forces operated and maintained by the federal government of a country.

Constitutional

Relating to the governing laws and principles that define the structure, roles, and powers of a government, typically outlined in a written constitution.

State Government

The governing authority of a state within a country, responsible for implementing local laws, policies, and managing public services and resources.