Which of the following determines the length of the operating cycle?
I.cash cycle
II.inventory period
III.accounts payable period
IV.accounts receivable period
A)I and III only
B)II and IV only
C)I, II, and IV only
D)II, III, and IV only
E)I, II, III, and IV

Question

Quizplus · Accepted Answer

The operating cycle is determined by the inventory period (the time it takes to sell inventory) and the accounts receivable period (the time it takes to collect cash from sales), not directly by the cash cycle or accounts payable period.

Which of the Following Determines the Length of the Operating