Which statement below is true about a company's operating cycle?
A) It may not exceed one year.
B) It must be one year.
C) It may be longer than a year.
D) It is always longer than a year.

Question

Quizplus · Accepted Answer

The operating cycle of a company, which is the time it takes for a company to purchase inventory, sell products, and collect cash from customers, can indeed be longer than a year, especially for companies dealing with long production processes or extended credit terms.

Which Statement Below Is True About a Company's Operating Cycle