An Operating Cycle

question 20

Multiple Choice

An operating cycle

• A) is twelve months or less in length.
• B) is the average time required for a company to collect its receivables.
• C) is used to determine current assets when the operating cycle is longer than one year.
• D) starts with inventory and ends with cash.

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Definitions:

Property Tax Rate

The percentage of a property's assessed value that is levied annually as tax by local governments, used to fund public services and amenities.

City Services

Public services provided by a city or town to its residents, such as water supply, sewage, trash collection, and emergency services.

Mill Rate

The amount of tax payable per dollar of the assessed value of a property, usually expressed in mills per dollar.

Graduated Commission

A commission structure where the rate of commission increases with the amount of sales or other measurable achievements.