Which One of the Following Statements About the Operating Cycle

question 49

Multiple Choice

Which one of the following statements about the operating cycle is correct?

• A)The operating cycle illustrates the sources and uses of cash.
• B)The operating cycle is equal to the cash cycle plus the accounts receivable period.
• C)The operating cycle begins when a product is sold to a customer.
• D)The operating cycle is based on a 360-day year.
• E)The operating cycle describes how a product moves through the current asset accounts.

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