With regard to accounting for a merchandising company versus a service company, which of the following is false?

Question

Quizplus · Accepted Answer

The operating cycle of a merchandising company is typically longer than that of a service company. This is because a merchandising company must first purchase inventory, then sell it, and then collect cash from customers, whereas a service company can often provide the service and collect payment in a shorter timeframe.

With Regard to Accounting for a Merchandising Company Versus a Service