A Firm's Operating Cycle Can Be Determined By

question 44

Multiple Choice

A firm's operating cycle can be determined by:

• A)Adding the inventory turnover ratio to the receivables turnover ratio divided into 365 days.
• B)Adding the average days in inventory to the average days in receivables.
• C)Dividing cost-of-goods-sold by average inventory.
• D)Dividing 365 days by the difference in the inventory turnover and the receivable turnover.

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Definitions:

Ischial Tuberosities

Bony protrusions located at the lower and back part of the pelvis, which bear the body's weight when sitting.

Iliac Fossae

The large, concave areas on the inner surface of the iliac bones, part of the pelvis.

Olecranon Process

A prominent projection on the upper end of the ulna that forms the tip of the elbow.

Distal End

The farthest point from the center of the body, or the point farthest from the point of attachment of a limb or structure.