Which of the following terms characterizes the time period between the investment of cash in merchandise and the collection of cash from the sale of that merchandise?
A)Operating cycle
B)Natural business year
C)Accounting period
D)Fiscal period

Question

Quizplus · Accepted Answer

The operating cycle refers to the time period between the purchase of inventory and the collection of cash from the sales of that inventory. It includes the time it takes to sell the merchandise, collect payment from customers, and restock inventory. The natural business year, accounting period, and fiscal period all refer to specific time frames for financial reporting and planning.

Which of the Following Terms Characterizes the Time Period Between