Accounting: A company's operating cycle is A company's operating cycle is:a) The fiscal year periodb) The period between auditsc) The time between purchase of inventoryand collection of cashd) The manufacturing period only

Explanation of Operating Cycle: The operating cycle represents the complete sequence of business…

Answered: A company's operating cycle is: a) The…

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter4: Internal Control And Cash

Section: Chapter Questions

Problem 11MCQ

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The descriptive sections of the annual report that provides insight into what the company does and the types of risks it lates is felt Select one: OA management discussion and analysis. B. the industry overview. OC. the audit opinion. D. notes to the financial statements. To best interpret the accounts receivable turnover ratio, the days in accounts receivable should be compared to the company's Select one: A sales revenue. B. credit terms. OC. inventory turnover. D. accounts receivable balance. Two companies have an identical amount of current assets and current liabilities Donald Inc. has 40% of its current assets invested in whereas Mickey Corp. has 30% of its current assets invested in inventory Which of the following statements is true? Select one: OA. Donald will have the higher quick ratio. OB. Donald will have the higher current ratio. OC. The companies are equally liquid because their current ratios are the same OD. Donald is less liquid than Mick
The average length of time between the purchase of raw materials and labor and the payment of cash for them is called as: a. Inventory Conversion Period b. Receivable Collection Period c. Average Payment Period d. Accounting Period
Inventory analysis A company reports the following: Determine (a) the inventory turnover and (b) the number of days sales in inventory. Round to one decimal place.
managerial account
1. The following information has been calculated for ABC Co: 52 days 42 days Trade receivables collection period Raw material inventory turnover period Work in progress inventory turnover period 30 days Trade payables payment period Finished goods inventory turnover period 45 days 66 days What is the length of the net operating cycle?
A product cost is Oa. shown with current liabilities on the balance sheet Ob. shown with operating expenses on the income statement c. expensed in the period in which it is manufactured Od. expensed in the period the product is sold
Q2. Categorize each of the following activities into the expenditure, conversion, or revenue cycles, and identify the applicable subsystem. a. Preparing the weekly payroll for manufacturing personnel b. Releasing raw materials for use in the manufacturing cycle c. Recording the receipt of payment for goods sold d. Recording the order placed by a customer e. Ordering raw materials f. Determining the amount of raw materials to order?
ANALYSIS OF ACTIVITY MEASURES Based on the financial statement data in Exercise 24-1B, compute the following activity measures for 20-2 (round all calculations to two decimal places): (a) Accounts receivable turnover (b) Merchandise inventory turnover (c) Asset turnover
An audit trail enables a person to trace a source document to its ultimate effect on the financial statements or work back from amounts in the financial statements to source documents. Describe in detail the audit trail for the following: a. Purchases of inventoryb. Sales of inventoryc. Employee payroll
Cutoff tests designed to detect valid sales that occurred before the end of the year but have been recorded in the subsequent year would provide assurance about management’s assertion ofa. Presentation and disclosure.b. Completeness.c. Rights and obligations.d. Existence.
A product cost is Oa. shown with operating expenses on the income statement Ob. shown with current liabilities on the balance sheet Oc. expensed in the period in which the product is manufactured Od. expensed in the period the product is sold
The three heading lines of financial statements typically include which of the following?A. company, statement title, time period of reportB. company headquarters, statement title, name of preparerC. statement title, time period of report, name of preparerD. name of auditor, statement title, fiscal year end

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A company's operating cycle is: a) The fiscal year period b) The period between audits c) The time between purchase of inventory and collection of cash d) The manufacturing period only