Which of the Following Cycles Is Not a Component of the Firm's

question 78

Multiple Choice

Which of the following cycles is not a component of the firm's operating cycle?

• A) inventory cycle
• B) accounts receivable cycle
• C) accounts payable cycle
• D) fixed asset cycle

---

Definitions:

Project Net Income

The total earnings expected to be generated by a project after accounting for all expenses and taxes.

Operating Cash Flow

Money produced through a firm's regular operational activities, showing if the firm can produce enough positive cash flow to sustain and expand its business.

Forecasting Risk

This involves the uncertainty or the potential for deviation from expected financial or operational performance outcomes, particularly in relation to predicting future business activities.

Operating Cash Flow

Indicates the amount of cash a company generates from its ongoing, regular business activities, highlighting its ability to cover operational expenses and invest in growth without external financing.