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
The time between the acquisition of inventory and the collection of cash from receivables is called the: Group of answer choices accounts receivable period. cash cycle. operating cycle. inventory period.
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 time between the acquisition of inventory and the collection of cash from receivables is called the: cash cycle. O operating cycle. accounts receivable period. O inventory period.
The time between the acquisition of inventory and the collection of cash from receivables is which of the following? A- operating cycle B- accounts receivable period C- inventory period D- accounts payable period
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
28. The average length of time between the purchase of raw material and labor and the payment of cash for them is called the a. cash conversion cycle b. days sales outstanding c. payables deferral period d. inventory conversion period e. receivables collection period
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.