Accounting: Tools for Business Decision Making, 5th Edition

Published by Wiley
ISBN 10: 1118128168
ISBN 13: 978-1-11812-816-9

Chapter 2 - A Further Look at Financial Statements - Questions: 1

Answer

The operating cycle of a business refers to the cycle of a business purchasing inventory, selling it to the customers and getting the cash back.

Work Step by Step

The whole cycle of a business taking cash and using it to sell inventory to customers and getting the money back is referred to as an operating cycle.
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