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

question 182

Multiple Choice

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

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

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