The Following Statements Are Regarding the Operating Cycle of a Merchandising

question 14

Multiple Choice

The following statements are 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:

Negotiated Agreement

A mutual arrangement or contract reached through discussion and compromise between parties.

Non-Rational Escalation

The phenomenon of continuing a course of action even when it is not in one's best interest, disregarding rational analysis.

Ego

The part of the psyche that mediates between the conscious and the unconscious and is responsible for reality testing and a sense of personal identity.

Face Saving

Actions or strategies designed to preserve one's reputation or respect in the face of potential embarrassment or shame.