The Following Statements Are True Regarding the Operating Cycle of a Merchandising

question 238

Multiple Choice

The following statements are true regarding the operating cycle of a merchandising company except:

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

---

Definitions:

Wheat

A cereal grain considered a staple food across the globe, used to make products like bread, pasta, and other foods.

Opportunity Cost

The value of the best alternative that is not chosen, to illustrate the trade-offs associated with any decision.

Crude Oil

A natural, unrefined petroleum product composed of hydrocarbon deposits.

Tractors

Heavy farm vehicles designed for plowing, tilling, and planting, essential in modern agriculture for efficient large-scale farming.