The length of the operating cycle is always considered to be a one year period, although that one year doesn't have to begin on January 1.

Question

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The length of the operating cycle is the time it takes for a company to purchase inventory, sell it, and convert the sale into cash. This cycle can be shorter or longer than one year and does not adhere to a fixed one-year period.

The Length of the Operating Cycle Is Always Considered to Be