An Operating Cycle

question 20

Multiple Choice

An operating cycle

• A) is twelve months or less in length.
• B) is the average time required for a company to collect its receivables.
• C) is used to determine current assets when the operating cycle is longer than one year.
• D) starts with inventory and ends with cash.

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Definitions:

Calorie Limit

A nutritional guideline specifying the maximum number of calories to be consumed in a day to maintain or achieve certain health goals.

Seafood Salads

A dish made primarily of various types of seafood and mixed with vegetables, dressings, or other ingredients, often served cold.

Budget Set

The collection of all possible combinations of goods and services that a consumer can afford with a given budget at current prices.

Price Reduced

A decrease in the cost at which goods or services are sold, typically to stimulate demand or clear inventory.