A venture's operating cycle measures the time it takes to:
A)purchase raw materials and assemble a product
B)assemble a product and book the sale
C)assemble a product, book the sale, and collect on the sale
D)purchase raw materials, assemble a product, book the sale, and collect on the sale

Question

Quizplus · Accepted Answer

The operating cycle of a venture encompasses the entire process from purchasing raw materials, assembling the product, booking the sale, to finally collecting on the sale. This cycle measures the time taken from the initial investment in inventory to the collection of revenue from sales, providing insight into the efficiency and liquidity of the business operations.

A Venture's Operating Cycle Measures the Time It Takes To