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Taylor Moreno
on Oct 27, 2024

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The operating cycle includes the number of days it takes to:

A) Purchase goods,sell goods,pay cash to suppliers.
B) Purchase goods,pay cash,collect cash from customers.
C) Borrow money,collect cash from customers,repay cash borrowed.
D) Pay cash for goods,sell goods,collect cash from customers.

Operating Cycle

The duration it takes for a company to purchase inventory, sell products or services, and collect cash from customers.

Collect Cash

The process of receiving cash in exchange for goods or services rendered, contributing to a company's cash inflows.

Pay Cash

The act of settling a transaction or purchasing goods and services by using physical currency or digital equivalents thereof.

  • Comprehend the components and importance of the operating cycle.
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HP
Hervie PabionaOct 30, 2024
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