Question

The operating cycle is equal to the:
a. cash cycle plus the accounts receivable period.
b. inventory period plus the accounts receivable period.
c. inventory period plus the accounts payable period.
d. accounts payable period plus the accounts receivable period.

Answer 1

Answer: Inventory cycle= inventory period plus the accounts receivable period

Explanation: The inventory cycle can be referred to as the total time required for a company to receive a stock of goods to its warehouse and the total time taken by the company to sell all the stock of products and collect payments on the sales of goods in its stock.