Which of the Following Activities Is Not a Component of the Operating

question 133

Multiple Choice

Which of the following activities is not a component of the operating cycle?

• A)Payment of employees' wages
• B)Sale of merchandise
• C)Purchase of merchandise
• D)Collection of cash from merchandise sales

---

Definitions:

Annual Incremental

Relates to the yearly increase or addition in terms of quantity, size, rate, or level of company metrics or budgets.

Net Operating Income

A company's revenue minus its operating expenses, excluding taxes and interest.

Initial Investment

Initial investment is the initial amount of money spent to start a project, purchase an asset, or embark on a new business venture.

Profitability Index

A financial tool used to measure the relative profitability of an investment, calculated by dividing the present value of future cash flows by the initial investment cost.