The Operating Cycle of a Company

question 106

Multiple Choice

The operating cycle of a company:

• A)Must be less than one year.
• B)Is usually greater than one year.
• C)Is the time it takes to purchase inventory,sell inventory,and collect cash from the sale.
• D)Is the time it takes to acquire a loan,pay the interest,and retire the loan by paying the creditor in full.

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Definitions:

Capillaries

Tiny blood vessels that form a network to exchange oxygen, carbon dioxide, and other substances between blood and tissues.

Glottis

The opening between the vocal cords in the larynx, through which air passes during respiration and which is used in producing vocal sounds.

Epiglottis

A leaf-shaped flap of cartilage located behind the tongue, which closes over the windpipe during swallowing to prevent food from entering the airways.

Nasal Cavity

The interior space of the nose, lined with mucosa, involved in breathing and the olfactory process.