Which of the Following Businesses Is Likely to Have the Shortest

question 46

Multiple Choice

Which of the following businesses is likely to have the shortest operating cycle?

• A)A food store.
• B)A department store.
• C)An art store.
• D)A car store.

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Definitions:

Working Capital

The disparity between a firm's existing resources and its short-term obligations, showcasing its ability to fulfil financial commitments and operational prowess.

Current Assets

Resources anticipated to be transformed into cash, sold off, or used up either within a year or over the span of the business's regular operational cycle, depending on which is more extended.

Current Liabilities

Short-term financial obligations that a company is expected to pay within one year.

Reasonably Possible

A term used in accounting and legal contexts to describe outcomes that are more than remote but less than likely.