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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      


Team Careers360 19th Jan, 2024
Answer (1)
Team Careers360 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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