The operating cycle relates to relationships between inventory, sales, accounts receivable and the collection of cash.

Name: The operating cycle relates to relationships between inventory, sales, accounts receivable and the collection of cash.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The operating cycle measures the time it takes a company to purchase inventory, sell it, and collect cash from the sale, thus involving relationships between inventory, sales, accounts receivable, and cash collection.

The Operating Cycle Relates to Relationships Between Inventory, Sales, Accounts