Question

Review the statements below and select the items that are correct regarding the operating cycle for a business. (Check all that apply.)

Multiple select question.
A. Most operating cycles are greater than one year. Most operating cycles are less than one year.
B. The length of a company's operating cycle depends on its activities.
C. Most companies use a one-month period or operating cycle in deciding which assets and liabilities are current.
D. The operating cycle is the time span from when cash is used to acquire goods and services until cash is received from the sale of goods or services.
E. Most companies use a one-year period or operating cycle in deciding

Answer 1

The correct statements regarding the operating cycle for a business are that most operating cycles are less than one year, the length of a company's operating cycle depends on its activities, and the operating cycle is the time span from when cash is used to acquire goods and services until cash is received from the sale of goods or services.

Step-by-step explanation:

Regarding the operating cycle for a business, the correct statements are:

1. Most operating cycles are less than one year.
2. The length of a company's operating cycle depends on its activities.
3. The operating cycle is the time span from when cash is used to acquire goods and services until cash is received from the sale of goods or services.

Companies use different time periods for determining which assets and liabilities are current, such as one-month or one-year operating cycles, depending on their specific needs and industry.