Which of the following activities is not a component of the operating cycle?
A)Payment of employees' wages
B)Sale of merchandise
C)Purchase of merchandise
D)Collection of cash from merchandise sales

Question

Quizplus · Accepted Answer

Payment of employees' wages is a part of the administrative cycle, not the operating cycle. The operating cycle involves the purchase of inventory, sale of that inventory, and collection of the resulting cash.

Which of the Following Activities Is Not a Component of the Operating