Operating Cycle Is Measured as

question 140

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:

Loan With The Bank

An agreement where a bank lends money to a borrower, who agrees to repay it along with interest over a specified period.

Necessary Funds

Necessary funds refer to the essential money required to finance an operation, activity, or to cover expenses.

New Contract

An agreement created to establish or modify legal obligations between parties that may replace or supplement a previous contract.

Local Transport

Transportation services operating within a particular region or city, typically involving buses, trams, and local trains.