The operating cycle of a business is comprised of _______. (a) purchase activity (b) sales...

Question:

The operating cycle of a business is comprised of _____.

(a) purchase activity

(b) sales activity

(c) collection activity

(d) All of the above.

Accounting:

Accounting is an organizational and analytical process of summarizing business activities for external and internal users. Accountants examine a variety of transactions and work on the operating cycle of a business.

Answer and Explanation: 1

d) All of the above are part of the operating cycle of a business.

In the course of day-to-day operations, the business will make purchases, sales, and collect from those sales.


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Operating Cycle in Accounting: Definition & Formula

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Chapter 22 / Lesson 42
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Explore the operating cycle in accounting. See the operating cycle definition and understand how to calculate the operating cycle. Find the operating cycle formula.


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