Which of the Following Best Describes the Operating Cycle

question 111

Multiple Choice

Which of the following best describes the operating cycle?

• A)It is the length of the manufacturing process.
• B)It is the time that elapses from the purchase of inventory on account to the sale of inventory on account.
• C)It is the time that elapses from the completion of the manufacturing process to the cash collection from sale of the manufactured goods.
• D)It is the time that elapses from the cash payment to suppliers to collection of cash from customers.

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Definitions:

Due Diligence

The comprehensive appraisal of a business or investment opportunity to assess its value and uncover any potential liabilities or risks.

Attraction-Selection-Attrition (ASA) Theory

A theory suggesting that organizations attract and select individuals with similar personalities and lose those who are less similar, thereby becoming more homogeneous over time.

Artifacts

Physical objects created by human beings that have cultural or historical significance.

Corporate Value

Fundamental beliefs or principles that guide the actions and decision-making processes of an organization.