Operating Cycle Is Measured As

question 105

Multiple Choice

Operating cycle is measured as:

• A) Inventory Turns minus Average Collection Period
• B) Inventory Turns plus Average Collection Period
• C) Days' Sales in Inventory minus Average Collection Period
• D) Days' Sales in Inventory plus Average Collection Period

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Definitions:

Business Activity

Engagements or actions undertaken by individuals or companies to produce, sell, or distribute goods or services in pursuit of profits.

Laws

The system of rules that are recognized as regulating the actions of a country's or community's members and enforced by the imposition of penalties.

Forces of Competition

Forces of competition pertain to the external pressures in a marketplace from other firms that affect a company's ability to compete, often described in Porter’s Five Forces model.

Industry

A group of companies that operate in a specific sector of the economy, producing or supplying goods, services, or related technologies.