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:

Company's Responsibility

The duty of a corporation to act ethically towards its employees, customers, society, and the environment in its operations.

Relationship-Oriented

A business or marketing approach that prioritizes building long-term relationships with customers over immediate sales or transactions.

Salesperson

An individual who sells goods and services to others in exchange for money or other compensation.

Chamber of Commerce

A local or national organization of business owners and professionals aiming to promote and protect the interests of its members.