The operating cycle of a retail company is the length of time between the
A)purchase of inventory and the sale of the inventory to customers.
B)sale of inventory and the collection of any outstanding receivables from those sales.
C)purchase of inventory and the collection of any outstanding receivables from the sales of those items.
D)purchase of inventory and the time of sending sales invoices to customers.

Question

Quizplus · Accepted Answer

The operating cycle of a retail company is the period between the purchase of inventory and the collection of receivables from the sales of those items. This encompasses the entire process from buying the goods to selling them and finally collecting the money from customers.

The Operating Cycle of a Retail Company Is the Length