Which of the following businesses would most likely have the longest operating cycle?
A)A chain of coffee shops
B)A national sporting goods chain
C)An antiques dealer
D)A Christmas tree farm

Question

Quizplus · Accepted Answer

The length of the operating cycle is the average time it takes a business to convert inventory to accounts receivable plus the time it takes to convert accounts receivable into cash.The Christmas tree farm would most likely have the longest operating cycle because it takes longer to grow Christmas trees than it takes the three types of other businesses to obtain merchandise inventory.

Which of the Following Businesses Would Most Likely Have the Longest