The operating cycle is typically defined as the time it requires to convert
A)cash to inventory to receivables
B)raw materials to finished goods
C)finished goods to receivables to cash
D)cash to inventory to receivables to cash

Question

Quizplus · Accepted Answer

The operating cycle is the time it takes for a company to purchase inventory, sell it to customers, and collect the cash from the sales, effectively turning cash back into cash. This cycle encompasses the process from cash to inventory to receivables and back to cash.

The Operating Cycle Is Typically Defined as the Time It