The Length of the Operating Cycle Equals the Days' Sales

question 11

Multiple Choice

The length of the operating cycle equals the days' sales uncollected plus the

• A)days' payable.
• B)days' inventory on hand.
• C)receivable turnover.
• D)payables turnover.

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Definitions:

Fallacy

A mistaken belief, especially one based on unsound argument or reasoning.

Inductive Reasoning

A method of reasoning in which general conclusions are drawn from specific observations or instances.

Economic Stability

A condition in which an economy experiences steady growth, low inflation, and low unemployment.

Unemployment

The situation where individuals who are capable of working and are actively seeking work remain jobless.