Match each business with a description of the operating cycle for the business.

Choices are a) tree nursery b) fast food restaurant c) appliance store d) electric utility e) clothing store

1. Very short- customers typically pay cash, and inventory is often held less than 1 day.

2. A few months- merchandise is typically on hand for several weeks and some customers use credit.

3. More than one year- merchandise may be in inventory for several months, and most customers will pay for purchases after 1 or 2 years.

4. Several years - a number of years are required to prepare merchandise for sale. Customers probably pay cash for most items.

5. A few months customers pay monthly. The current assets used to provide customer services are consumed within a few months.