The operating cycle of a business is best defined as which of the following?
A)the period of time for which we prepare our financial statements
B)the length of time over which our plant and equipment assets are expected to be used by the company in generating revenues
C)the time it takes for a company to purchase and pay for goods or services from suppliers,sell those goods or services to customers and collect cash from the customers
D)one year

Question

Quizplus · Accepted Answer

The operating cycle of a business refers to the time it takes for a company to purchase and pay for goods or services from suppliers, sell those goods or services to customers, and collect cash from the customers. It involves the various steps involved in the production and sale of goods or services and includes all the processes and activities that occur from the beginning of the production cycle to the collection of cash from customers.

The Operating Cycle of a Business Is Best Defined as Which