Which activity is part of the operating cycle?
A) Selling goods and services
B) Buying property, plant and equipment
C) Issuing new shares
D) Negotiating a long-term note, payable to a bank

Question

Quizplus · Accepted Answer

Selling goods and services is part of the operating cycle, which involves the day-to-day activities of a business related to producing and selling its goods or services. Buying property, plant and equipment, issuing new shares, and negotiating long-term notes payable are not part of the operating cycle, but rather relate to financing and investing activities.

Which Activity Is Part of the Operating Cycle