Question

The operating cycle of a company: Multiple Choice Is the time it takes to acquire a loan, pay the interest, and retire the loan by paying the creditor in full. Must be less than one year. Is the time it takes to purchase inventory, sell inventory, and collect cash from the sale. Is usually greater than one year.

Answer 1

c. Is the time it takes to purchase inventory, sell inventory, and collect cash from the sale.

Step-by-step explanation:

The operating cycle of a company in this context is the average period of time that is required for the company to make an initial outlay of cash to produce product and services, sell and receive cash from consumers in exchange of goods or services.