The Following Statements Are True Regarding the Operating Cycle of a Merchandising

question 15

Multiple Choice

The following statements are true regarding the operating cycle of a merchandising company except:

• A)The operating cycle begins with the purchase of merchandise.
• B)The operating cycle is shortened by credit sales.
• C)The operating cycle ends with the collection of cash from the sale of merchandise.
• D)The operating cycle can vary in length among different merchandising companies.
• E)The operating cycle sometimes involves accounts receivable.

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Definitions:

Financial Calculation

The process of determining financial figures or results through formulas and financial models, often involving interests, payments, or investments.

Daily Interest

Interest calculated on a daily basis, often referring to the method used for savings accounts, loans, or credit cards.

Arithmetic Operations

Basic mathematical operations including addition, subtraction, multiplication, and division.

Exponential Notation

A mathematical way to write numbers using powers of a base number, commonly used for expressing very large or very small values.