Which of the following activities is not a component of the operating cycle?
A) Payment of rent
B) Payment for purchases made on credit
C) Purchase of merchandise
D) Collection of cash from credit sales

Question

Quizplus · Accepted Answer

Payment of rent is not a component of the operating cycle because it is typically classified as a period cost and not directly related to the production or selling of goods or services. The operating cycle includes the purchase of merchandise (C), payment for purchases made on credit (B), and collection of cash from credit sales (D).

Which of the Following Activities Is Not a Component of the Operating