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#analyst-notes #cfa-level-1 #financial-reporting-and-analysis #reading-26-understanding-balance-sheets
Where there are several operating cycles within one year, the one-year period is used. If the operating cycle is more than one year, the longer period is used.
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Subject 1. Components and Format of the Balance Sheet
n the acquisition of materials and supplies and the realization of cash through sales of the product for which the materials and supplies were acquired. The cycle operates from cash through inventory, production, and receivables back to cash. <span>Where there are several operating cycles within one year, the one-year period is used. If the operating cycle is more than one year, the longer period is used. Long-Term Investments Often referred to simply as investments, these are to be held for many years and are not acquired with the intention of disposing of them


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