Question

A series of activities that generates revenues and collects cash from customers is called:

a) Capital expenditure
b) Operating cycle
c) Cash flow statement
d) Revenue stream

Answer 1

The operating cycle refers to a series of activities that generate revenues and collect cash from customers.

Step-by-step explanation:

A series of activities that generates revenues and collects cash from customers is called the operating cycle. The operating cycle refers to the time it takes for a company to convert its inventory and other assets into cash by making sales and collecting payments from customers. It includes activities such as purchasing inventory, producing goods or delivering services, selling the goods or services to customers, and collecting payments.