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:

Temperature Homeostasis

The physiological process that regulates the body temperature within a narrow range despite external temperature changes.

Completely Inelastic

A situation in which the demand or supply for a product does not change in response to changes in price.

Inelastic

Refers to a circumstance in which the demand or supply of a product or service is largely unaffected by price fluctuations.

Elastic

Describes a situation in which the demand or supply for a good or service significantly changes in response to price changes.