The time span during which cash is used to acquire goods and services, and these goods and services are sold to customers, who in turn pay for their purchases with cash, is called the:
A)accounting cycle.
B)cash-to-cash cycle.
C)liquidity cycle.
D)operating cycle.

Question

Quizplus · Accepted Answer

The operating cycle refers to the time span during which a company uses cash to acquire goods and services, sells them to customers, and collects cash from these sales.

The Time Span During Which Cash Is Used to Acquire