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

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

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

See similar textbooks

Related questions

Q: Which of these transactions requires a debit entry to Cash?A. paid balance due to suppliersB. sold…

A: Cash is one of the asset held by the business, for which normal balance is debit balance. Any…

Q: The sales journal is used to record a. Credit sales. d. Cash purchases. b. Cash sales. e. Credit…

A: Sales journal is one of the kind of special journal. Special journals are used, when a company has…

Q: ________are used to measure the speed in which various accounts are converted into sales or cash.

A: Activity ratios are the metric used to measure how efficiently a company can use its assets. They…

Q: Explain two methods that an organization could use to monitor its balances of : Cash Accounts…

A: Current assets - These are those assets that the company owns and expects to convert into cash…

Q: The time between cash disbursement and cash collection is which of the following? A- accounts…

A: Solution- The cash to cash cycle is the fundamental quantity between once a business…

Q: c. receivab

A: Cash Management: It is the technique to meet out all the payment obligations of day to day operation…

Q: When a company extends credit directly to a customer for a purchase, the sale is recorded as a debit…

A: Customer record: It is the record of customers of company which contains details like name, address,…

Q: Which of the following account will be least likely involved in the purchasing sub-process of the…

A: Purchasing and Disbursement Cycle is the whole process which starts with purchase of inventory and…

Q: The entry to record collection of trade receivables under cash basis of accounting is* debit to…

A: Following is the answer to the given question

Q: It is an amount owed to suppliers for goods purchased or services performed on credit. O a. Accounts…

A: Accounts payable is credited when goods are purchased on credit. Unearned revenue is when cash is…

Q: Which of the following activities is not a component of the operating cycle? a.

A: operating cycle refers to the time the entity takes to buy the goods, process and sell those goods…

Q: A characteristic that all entries recorded in a cash receipts journal have in common is Select one:…

A: Correct option is C i.e. a debit to the cash account

Q: is the amount of goods remaining unsold in a particular period a. Cash O b. Accounts receivable O C.…

A: Goods are the items that the entity purchase from the supplier to sell to the customer and earn…

Q: The time period, which elapses between the point at which cash is spent on the production of a…

A: The firm generally gets cash from own resources or from outside as a debt. The cash is used for the…

Q: The entry to record collection of trade receivables under cash basis of accounting is A. debit to…

A: Under cash basis of accounting only cash transections are recorded such as cash collection, Cash…

Q: B. trial balance C. chart of accounts D. income statement 8. Sales to customers who use bank…

A: 7.(b) trial balance Trial balance is used to check that total debits equal total credits and shows…

Q: The operating cycle is best described as the time between a.the formation of the company and the…

A: The amount of time a corporation spends between spending money on operational activities and…

Q: -It is used to who is responsible for paying shipping and when the title of the goods passes from…

A: Terms that determine the responsibility of bearing of shipping cost are shipping terms.

Q: he ___________ is the process by which a company spends cash, generates revenues, and receives cash…

A: Solution Concept In a business there may be various activities conducted Every business has its core…

Q: Which of the following entries for goods sold by cash is correct? a) Cash Dr, AR Cr b) AR Dr,…

A: Goods or services provided by the business can be sold for cash or on account. Cash sales are sales…

Q: . The operating cycle is equal to which one of the following? A. Inventory period plus the…

A: Operating cycle is computed as follows: Cash operating cycle is computed as follows: Cash…

Q: Which of the following options indicate how quickly accounts receivables are converted into cash?…

A: Accounts receivables are those customer accounts to whom business has made credit sales. Every…

Q: . Which one of the following defines the cash cycle? A. Inventory period plus the accounts…

A: Cash cycle:It refers to the time it takes for a firm to turn raw materials into cash.

Q: which statement is true about the operating cycle a. the time needed from acquiring inventory from…

A: The operating cycle is the average period of time or days required for a business to make an initial…

Q: which of the following account will be least likely involved in the purhasing sub-process of the…

A: The journal entries are prepared to keep the record of day to day transactions of the business. The…

Q: Before processing a batch of invoices, the accounts payable clerk sums the quantities billed. The…

A: Accounts payable forms a part of current liabilities of the business and represent the amount due to…

Q: A cash sale is recorded in the: A sales journal B purchase journal c) cash receipts journal D cash…

A: Cash book is maintained by the firms to record all the cash transactions. These may be cash sales,…

Q: 1. Prepare chart of accounts using the following CASH EQUIPMENT INVENTORY ACCOUNTS RECEIVABLE…

A: solution chart of accounts we are required to classify the given items as to whether they are…

Q: he time between the acquisition of inventory and the collection of cash from receivables is which of…

A: The operating cycle(OC) is the time from the beginning of production process to collection of cash…

Q: In which of the following transaction, bank account will be debited? O a. Purchased goods on cash O…

A: SOLUTION- Cash Deposit In To Bank is Simply Transfer the Cash From Location to Another , The Asset…

Q: Identify whether each of the following transactions, which are related to revenue recognition, are…

A: Revenue recognition principle says that revenue should be recognised in business when it is earned.…

Q: Which of the following situations has to .5 ? do with account payable )2 نقطة( Sales on credit…

A: Note: Since you have posted multiple questions, we will solve the first question. Please submit a…

Q: Which of the following account will be least likely involved in the purchasing sub-process of the…

A: The purchasing sub-process of the purchasing and disbursement cycle starts with authorization of…

Q: ebtors, inventories and bills receivable etc. that gets converted into cash within one operating…

A: 1.Debtors:- A debtor may be defined as person or an organization who takes money from the company as…

Q: Develop a flowchart for revenue cycle of 7-Eleven retail store containing their cash disbursement,…

A: Revenue cycle is the method used for recording the generation of revenue in an accounting period.…

Q: 3. The freight on shipment of inventories from the home office to the branch that is paid by the…

A: Hi student Since there are multiple questions, we will answer only first question

Q: Transactions involved in the purchases and cash disbursements cycle include: A Debit inventory,…

A: Purchases and disbursements cycle is one of the important cycle used in accounting information…

Q: ME8 Which of the following entries for goods sold by cash is correct? a) Cash Dr, AR Cr b) AR Dr,…

A: Hi student Since there are multiple questions, we will answer only first question.

Q: The current assets are? ending raw materials inventory. account receivable. notes receivable bank.…

A: The current assets refer to those kinds of assets that can be converted into cash and cash…

Q: 3. A one-column sales journal may be used to record a. sales of supplies on account. b. sales of…

A: solution one column sales journal One column sales journal is a journal which is used to record the…

Q: The operating cycle for a merchandiser that only has cash sales moves from:

A: AS THIS IS THE CASE WHERE MERCHANDISER ONLY HAS CASH SALES SO THERE WILL BE NO ACCOUNTS RECEIVABLE…

Question

4. The operating cycle is typically defined as the time it requires to convert

a. cash to inventory to receivables
b. raw materials to finished goods
c. finished goods to receivables to cash
d. cash to inventory to receivables to cash

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

EXPLANATION

VIEW

ANSWER

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Name two situations where cash would be remitted to a retailer from a manufacturer after purchase.
The operating cycle is best described as the time between a.the formation of the company and the start of operations. b.production and sale of inventory. c.the sale of inventory and collection of receivables. d.purchase of goods for resale and collection of cash from customers.
The current assets are :- a - ending raw materials inventory. b - account receivable. c - notes receivable d - bank. e - cash. f - all of them.
1. What is the Raw Material balance at the end of the period?2. What is the Work in process account balance at the end of the period?3. What is the Cash account balance at the end of the period?4. What is the Net Income at the end of the period in the Income Statement?5. What is the Total Inventory balance at the end of the period in the Balance sheet?
The time period, which elapses between the point at which cash is spent on the production of a product, and the collection of cash from the customer is called as: a. Credit Period b. Operating Cycle c. Accounting Year d. Accounts Receivable
which statement is true about the operating cycle a. the time needed from acquiring inventory from suppliers into collect cash from customers b. as longer cycle as better into the firm c. the time needed from acquiring inventory from suppliers into collect cash from customers and pay suppliers d. the time needed from acquiring inventory from suppliers into sell inventory into customers
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
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
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
. Which one of the following defines the cash cycle? A. Inventory period plus the accounts receivable period B. Inventory period plus the accounts payable period C. Operating cycle minus the inventory period D. Operating cycle minus the accounts payable period E. Operating cycle minus the accounts receivable period
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 options indicate how quickly accounts receivables are converted into cash? Select one: a. Total assets turnover b. Days to collect accounts receivable c. Working capital d. Accounts receivable turnover