Question: For the purpose of classifying liabilities as current or noncurrent, the term operating cycle refers to a. the time period between the date the sale

For the purpose of classifying liabilities as current or noncurrent, the term operating cycle refers to

a. the time period between the date the sale is made and the date the related revenue is collected.

b. the time period between the purchase of merchandise and the conversion of this merchandise back to cash.

c. a period of one year.

d. the average time period between business recessions.


Select the best choice from among the possible answers given.

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