The normal operating cycle helps define which of the following balance sheet sections?
A)Stockholders' equity
B)Current liabilities
C)Intangible assets
D)Property,plant,and equipment

Question

Quizplus · Accepted Answer

The normal operating cycle refers to the process of converting inventory to cash, which typically takes place within one year or the operating cycle, whichever is longer. Current liabilities include obligations that are expected to be settled within the operating cycle, so understanding the normal operating cycle is essential in determining which liabilities should be classified as current.

The Normal Operating Cycle Helps Define Which of the Following