Which of the Following Statements Regarding the Operating Cycle of a Merchandising

question 212

Multiple Choice

Which of the following statements regarding the operating cycle of a merchandising company is not true?

• A)The operating cycle begins with the purchase of merchandise.
• B)The operating cycle is shortened by credit sales.
• C)The operating cycle ends with the collection of cash from the sale of merchandise.
• D)The operating cycle can vary in length among different merchandising companies.
• E)The operating cycle sometimes involves accounts receivable.

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Definitions:

Inflationary Spiral

A situation where rising wages lead to increased demand and prices, which then lead to higher wages and prices again, creating a continuous upward price spiral.

Unemployment

The condition of not having a job, describing individuals actively seeking work but unable to find employment.

Affirmative Action

A set of policies aimed at increasing opportunities for historically excluded groups in education and employment by considering factors including race and gender.

Quotas

Are limits set by governments on the quantity of a product that can be imported or exported within a certain timeframe, used to regulate trade and protect domestic industries.