The operating cycle is the elapsed time between the:
A)Purchase of goods or services and the ultimate collection of cash from customers related to the sale of those goods.
B)Sale of goods or services to customers and the payment to suppliers for those goods.
C)Purchase of goods from suppliers and the performance of the related service for customers.
D)Sale of goods and the delivery of those goods to customers.

Question

Quizplus · Accepted Answer

The operating cycle is the time it takes for a business to convert its inventory and other assets into cash received from customers. It starts with the purchase of goods or services and ends with the collection of cash from customers related to the sale of those goods. Option A is the only choice that fits this definition.

The Operating Cycle Is the Elapsed Time Between The