1. The operating cycle is the time required to:

Group of answer choices

A. accept a customer order and manufacture the goods.

B. record accounting transactions and prepare financial statements.

C. acquire goods and services for sale to customers; sell the goods and services; and collect cash from customers.

D. close the accounts and prepare the post-closing trial balance.

2. The deferral adjustment for liabilities:

Group of answer choices

A. records the amount of the asset used up during the period.

B. records the amount of revenue earned for the period.

C. increases a liability account.

D. decreases an asset account.