The Operating Cycle Is Equal to The

question 15

Multiple Choice

The operating cycle is equal to the:

• A) cash cycle plus the accounts receivable period.
• B) inventory period plus the accounts receivable period.
• C) inventory period plus the accounts payable period.
• D) accounts payable period minus the cash cycle.
• E) accounts payable period plus the accounts receivable period.

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Definitions:

Federal Government

The federal government is the national government, which holds the ultimate authority over a federated country, responsible for executing laws, and managing national affairs and foreign policy.

Federal Budget

The government's plan for revenue and expenditures for a fiscal year, detailing how federal funds will be spent and collected.

Direct Taxes

Taxes levied directly on an individual's or organization's income or wealth, such as income tax and property tax.

Indirect Taxes

Taxes that are not directly paid by an individual but instead are levied on goods and services, such as sales tax or value-added tax.