When an entity's operating cycle is not clearly identifiable it is assumed to be:
A) three months;
B) six months;
C) nine months;
D) 12 months.

Name: When an entity's operating cycle is not clearly identifiable it is assumed to be: A) three months; B) six months; C) nine months; D) 12 months.
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Question

Quizplus · Accepted Answer

When an entity's operating cycle is not clearly identifiable, it is assumed to be 12 months, which is the standard operating cycle assumed by GAAP (Generally Accepted Accounting Principles).

When an Entity's Operating Cycle Is Not Clearly Identifiable It