Which of the following statements is correct? The length of a business's operating cycle is the time that elapses between:

Question

Quizplus · Accepted Answer

The operating cycle of a business involves the conversion of inventory into cash, and thus, it begins with the acquisition of inventory and ends with the receipt of cash for the sale of inventory. Option A is incorrect because it only covers a part of the operating cycle. Option B is incorrect because it only considers non-current assets and does not relate to the entire operating cycle. Option D is incorrect because it includes the initial investment, which is not a part of the operating cycle.

Which of the Following Statements Is Correct? the Length of a Business's