Which of the Following Statements About a Company's Operating Cycle

question 71

Multiple Choice

Which of the following statements about a company's operating cycle is not true:

• A)Non-current items are those expected to come due within one year or the company's operating cycle.
• B)The operating cycle is the time span from when cash is used to acquire goods and services until cash is received from the sale of goods and services.
• C)The length of a company's operating cycle depends on its activities.
• D)For a merchandiser selling products,the operating cycle is the time span between paying suppliers for merchandise and receiving cash from customers.
• E)Most operating cycles are less than one year.

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Definitions:

Unemployment

The condition of someone being without a job despite actively looking for work, expressed as a percentage of the labor force.

Aggregate Demand

The total demand for all goods and services within a particular market or economy, including consumption, investment, government spending, and net exports.

Inflation

The velocity at which the total cost of products and services surges, reducing purchasing capacity.

Unemployment

The situation of being without a job, while actively looking for one and willing to work.