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.

Understand the principles for interpreting contracts and the importance of parties' intent.

Distinguish between different states of contracts: express, implied, executed, and executory.

Identify circumstances under which contracts may be considered void, voidable, or unenforceable.

Recognize the legal principles that apply to ambiguous contract terms.

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Definitions:

Operating Agreement

An agreement containing various rights, provisions, and powers that aid in establishing the bylaws of an LLC.

Legal Rights

Rights bestowed upon individuals or entities by the law, protecting their interests and enforcing duties upon others.

Asset Acquisition

The purchase of all the property of a corporation by another corporation.

Board Of Directors

A group of individuals elected by the shareholders of a corporation to oversee the management and make major decisions about the company's policies and strategies.