Question

If the operating cycle of a company cannot be identified, it is assumed to be ______.

Options

• 18 months

• 12 months

• 10 months

• 15 months

Answer 1

If the operating cycle of a company cannot be identified, it is assumed to be 12 months.

Explanation:

This is in accordance with Schedule III, where it states: “Where the normal operating cycle cannot be identified, it is assumed to have a duration of 12 months.”