The operating cycle is typically defined as the time it requires to convertcash to inventory to receivables.raw materials to finished goods.cash to inventory to receivables to cash.finished goods to receivables to cash.

Step 1:Operating cycle is the company's operations length. In this cycle company is having cash…

Answered: The operating cycle is typically…

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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4. The operating cycle is typically defined as the time it requires to convert a. cash to inventory to receivablesb. raw materials to finished goodsc. finished goods to receivables to cashd. cash to inventory to receivables to cash
Which of the following best describes the activities of the accounting function? a. inventory control, accounts payable, fixed assets, and payrollb. fixed assets, accounts payable, cash disbursements, and cost accounting c. purchasing, cash receipts, accounts payable, cash disbursements, and payroll d. inventory control, cash receipts, accounts payable, cash disbursements, and payroll e. inventory control, cost accounting, accounts payable, cash disbursements, and payroll
When does the cost of inventory become an expense?a. When cash is collected from the customerb. When inventory is delivered to a customerc. When payment is made to the supplierd. When inventory is purchased from the supplier
which of the following account will be least likely involved in the purhasing sub-process of the purchasing and disbursement cycle? a. inventory b. prepaid expenses c. accounts payable d. cash in bank
Under the realization principle, revenue from sale of products is recognized a. At date of delivery to the customers C. When the customers are billed b. When the inventories are readied for shipment D. Upon receipt of cash payment
. The operating cycle is equal to which one of the following? A. Inventory period plus the accounts payable period B. Accounts receivable period plus the cash cycle C. Inventory period minus the accounts payable period plus the accounts receivable period D. Accounts receivable period plus the inventory period E. Inventory period plus the cash cycle
When goods are delivered after an advance receipt of cash, Unearned Sales Revenue is debited. Cash is debited. Unearned Sales Revenue is credited. Sales Revenue is debited. choose the correct ans
credit terms are terms for a. when the payments for merchandise are to be made b. when inventory is purchased c. when the returns of merchandise are to be made d. when payments for merchandise are to be made with cash
The return of goods by a customer ( Sales Return ) should be credited in the ledger account of ? Select one: a. Sales account O b. Accounts receivable account O c. Purchase Return account O d. Sales Return account
Operating expenses are comprised of the following: General and Administrative Expense, Cost of Goods Sold, Marketing and Selling Expense General and Administrative Expense, Interest Expense, Cost of Goods Sold Marketing and Selling Expense, General and Administrative Expense, Finance Costs Marketing and Selling Expense, Other Income
Which of the following account will be least likely involved in the purchasing sub-process of the purchasing and disbursement cycle? Inventory Prepaid expenses Accounts payable Cash in bankv
What is the account title used for revenue when goods are delivered to customers?

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The operating cycle is typically defined as the time it requires to convert cash to inventory to receivables. raw materials to finished goods. cash to inventory to receivables to cash. finished goods to receivables to cash.