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The time from spending cash to collecting payment from the customer is the operating:
ACushion
BCycle
CCeiling
DCharter
Answer & Solution
Correct answer: B. Cycle
1. It runs from cash out to cash back in.
2. A shorter one leaves the firm more stable.
3. That span is the operating cycle.
_Source: OpenStax Principles of Financial Accounting, Chapter 6, Merchandising Transactions._
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