Which of the following statements about a company's operating cycle is not true:

Question

A. For a merchandiser selling products, the operating cycle is the time span between paying suppliers for merchandise and receiving cash from customers.
B. Non-current items are those expected to come due within one year or the company's operating cycle.
C. Most operating cycles are less than one year.
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 and services.
E. The length of a company's operating cycle depends on its activities.

Answer 1

Answer: B