Which One of the Following Activities Is Not a Major

question 159

Multiple Choice

Which one of the following activities is not a major component of the operating cycle?

• A) manufacturing process
• B) selling effort
• C) collection period
• D) asset investment decisions

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Definitions:

Federal Expenditures

The spending by the federal government of a country, including on defense, education, public welfare, and infrastructure projects.

Average Tax Rate

The portion of total income paid in taxes, calculated by dividing the total amount of taxes paid by the taxpayer's total income.

Taxable Income

The amount of income subject to taxes, determined by subtracting deductions and exemptions from gross income.

Marginal Tax Rate

The percentage of tax applied to your income for each tax bracket in which you qualify, essentially the rate applied to the last dollar of the taxpayer's income.