The operating cycle of a company is determined by the number of years the company has been operating.

Question

Quizplus · Accepted Answer

The operating cycle of a company refers to the time it takes to convert resources (such as inventory) into cash, and then to convert that cash back into resources. It is not determined by the number of years the company has been operating, but rather by various factors such as the nature of the company's operations and industry, its management practices, and its supply chain.

The Operating Cycle of a Company Is Determined by the Number