The operating cycle is defined as the period of time between the _____ and the _____.
A) Payment of an account payable; collection of cash related to that payable.
B) Purchase; sale of inventory.
C) Acquisition of inventory; collection of cash from the sale of that inventory.
D) Sale of a product; collection of payment for that product.
E) Acquisition of inventory; payment to the supplier of that inventory.

Question

Quizplus · Accepted Answer

The operating cycle is the time it takes for a company to purchase inventory, sell it, and collect cash from the sale, which is accurately described in option C.

The Operating Cycle Is Defined as the Period of Time