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:

Strong Base

A substance that can completely dissociate in water to produce hydroxide ions and a corresponding cation.

Hydroxide Ions

Negatively charged ions made of oxygen and hydrogen (OH-), which characterize basic solutions.

pH

A numeric scale used to specify the acidity or basicity of an aqueous solution, ranging from 0 to 14.

Strong Acids

Acids that completely dissociate into their ions in water, significantly increasing the concentration of hydrogen ions in a solution.