Which of the Following Is a Firm's Operating Cycle

question 49

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
• E)the average length of time between when a firm receives cash for its current inventory and uses that cash to purchase new inventory

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Definitions:

Variables

Elements, features, or factors that are liable to vary or change, often measured, manipulated, or controlled in scientific studies.

Averages

A mathematical concept denoting the central or typical value in a set of data, calculated in various ways such as mean, median, and mode.

Acceptance Sampling

A method of measuring random samples of lots or batches of products against predetermined standards.