What Is an "Operating" Cycle

question 74

Multiple Choice

What is an "operating" cycle?

• A)A cycle of transactions that converts cash inflows to cash outflows, or vice versa.
• B)A cycle where there is receipt of funding from investors, those funds are used to generate returns from investments and operations, and then the funds are returned to investors.
• C)A cycle where a property is purchased that has long-term future benefits for the enterprise, which ultimately results in cash inflows, and then the property is disposed of.
• D)A cycle that involves the purchase of items such as inventory; production, sales, delivery of goods or provision of services; and receipts from customers.

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Definitions:

Atrophy

The decrease in muscle mass or tissue size, often due to lack of use, disease, or malnutrition.

Slow-Twitch

Muscle fibers that are fatigue-resistant but generate less power, suited for endurance activities.

Ligament

A short band of tough, flexible, fibrous connective tissue that connects two bones or cartilages or holds together a joint.

Bronchoconstriction

A narrowing of the airways in the lungs due to the tightening of surrounding smooth muscle, leading to coughing, wheezing, and shortness of breath.