The Operating Cycle Is Composed of

question 13

Multiple Choice

The operating cycle is composed of

• A) the average age of a firm's inventory.
• B) the average collection period.
• C) both a and b
• D) none of the above.

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Definitions:

Securities

Financial instruments that represent an ownership position in a publicly-traded corporation (stock), a creditor relationship with a governmental body or a corporation (bonds), or rights to ownership as represented by an option.

Nonresident

An individual or entity that does not reside within a particular jurisdiction, often affecting tax and legal responsibilities.

Private Securities Litigation Reform Act

A 1995 U.S. federal law aimed at reducing frivolous securities litigation, mainly by imposing more stringent requirements on plaintiffs.

Meaningful Cautionary Statements

Specific disclosures or warnings that are significant and clear enough to alert individuals about potential risks or dangers.