The operating cycle is best described as the time between A. production and sale of inventory. B. the sale of inventory and collection of receivables. C. the formation of the company and the start of operations. D. purchase of goods for resale and collection of cash from customers.

Question

Business

Adam

1 November, 09:33

The operating cycle is best described as the time between A. production and sale of inventory. B. the sale of inventory and collection of receivables. C. the formation of the company and the start of operations. D. purchase of goods for resale and collection of cash from customers.

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Answers (1)

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Remington Warner · Answer 1

B. the sale of inventory and collection of receivables

Explanation:

An operating cycle is best described as the time between the company's cash payment to the suppliers of inventories. The collection of the cash from the sales of the inventory to the customers and also suggests that the time of the business entity can be reported as time such as the quarters and in years.