Which of the Following Is a Firm's Operating Cycle

question 32

Multiple Choice

Which of the following is a firm's operating cycle?

• A) the average length of time between when a firm originally purchases its inventory and when it receives the cash back from selling its product
• B) the average length of time between when a firm pays cash to purchase its initial inventory and when it receives cash from the sale of the product produced from that inventory
• C) the average length of time between when a firm originally purchases its inventory and when it sells the product produced from that inventory
• D) the average length of time between when a firm originally purchases its inventory and when it pays cash for that inventory

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Definitions:

Birthrates

A statistical figure that represents the number of births per 1,000 people in a population over a specific period of time.

Death Rates

A statistical figure showing the number of deaths per year, often per 1,000 individuals, in a particular population.

World Commodity Prices

The prices of raw materials and agricultural products that are traded on a global scale.

BTU

British Thermal Unit, a measure of heat energy used in the power, steam generation, heating, and air conditioning industries.