The Operating Cycle Is Equal to Days' Sales Uncollected Plus

question 58

True/False

The operating cycle is equal to days' sales uncollected plus days' inventory on hand minus days' payable.

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Definitions:

1099

A series of IRS tax forms used to report various types of income other than wages, salaries, and tips.

IRS Form

A document that is used for reporting and filing information with the Internal Revenue Service (IRS) in the United States.

Sole Proprietorships

A business structure where the business is owned and run by one individual, with no distinction between the business and the owner.

Partnerships

A business organization where two or more individuals manage and operate the business in accordance with terms set out in a partnership agreement.