The ________ is the time span during which cash is paid for goods and services,which are then sold to customers from whom the business collects cash.
A) operating cycle
B) accounting period
C) calendar year
D) calendar quarter

Question

Quizplus · Accepted Answer

The operating cycle is the time span during which a business purchases goods or services, converts that inventory into finished products, sells those products to customers on credit, and then collects cash. It represents the period of time required for a business to complete all of its cash-to-cash transactions. The accounting period refers to the period of time covered by a company's financial statements and can vary based on the company's reporting requirements. The calendar year and calendar quarter are specific time periods in the Gregorian calendar and are not directly related to a business's cash flow cycle.

The ________ Is the Time Span During Which Cash Is