Question : -------------- is the time between the acquisition of an asset for processing and its Realization into "Cash and Cash Equivalents.”
Option 1: Operating cycle
Option 2: Accounting period
Option 3: Financial year
Option 4: None of the above
Answer (1)
22nd Jan, 2024
Correct Answer: Operating cycle
Solution : Answer = Operating cycle
The term "operating cycle" refers to the time duration from the acquisition of an asset for processing or production to its eventual conversion into cash or cash equivalents through sales. It represents the period during which a company invests in inventory, incurs expenses, and generates revenue from sales to customers.
Hence, the correct option is 1.
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