To trace cash flows through the firm's operations, we must measure which of the following? (It is the time necessary to acquire raw materials, turn them into finished goods, sell them, and receive payment for them.)
A) Cash cycle
B) Operating cycle
C) Transaction cycle
D) Production cycle

Question

Quizplus · Accepted Answer

The operating cycle measures the time it takes for a company to purchase inventory, sell products, and collect payment for those sales, which aligns with the description provided.

To Trace Cash Flows Through the Firm's Operations, We Must