How Is a Company's Operating Cycle Determined

question 73

Multiple Choice

How is a company's operating cycle determined?

• A)Adding the inventory turnover ratio to the receivables turnover ratio divided into 365 days.
• B)Adding the average days in inventory to the average days in receivables.
• C)Dividing cost of goods sold by average inventory.
• D)Dividing 365 days by the difference in the inventory turnover and receivable turnover.

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Definitions:

Roller Bearings

Bearings that use cylindrical or spherical rollers positioned between two races to reduce friction and support radial and axial loads.

Needle Bearings

A type of roller bearing with long, thin cylindrical rollers resembling needles, used in applications with limited space and high load capacity.

Journal Bearings

Journal bearings are a type of plain bearing that support radial loads by enclosing the shaft along its length, offering a smooth, lubricated surface for the shaft to rotate within.

Sleeve Bearings

Bearings consisting of a cylindrically shaped liner that allows for relative motion by sliding, used in various machinery for rotational or sliding movements.