The operating cycle is the elapsed time between the
A)purchase of goods or services and the ultimate collection of cash from customers related to the sale of those goods.
B)sale of goods or services to customers and the payment to suppliers for those goods.
C)purchase of goods from suppliers and the performance of the related service for customers.
D)sale of goods and the delivery of those goods to customers.

Question

Quizplus · Accepted Answer

The operating cycle refers to the period from when a company purchases inventory or services to when it collects cash from customers for the sale of those goods or services. This encompasses the entire process from acquisition, through production (if applicable), sale, and finally to the collection of receivables.

The Operating Cycle Is the Elapsed Time Between the