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.

Q: Match each description with the appropriate financial statement. A. Income Statement Reports the…

A: Solution: Income statement shows income and expenses during the period. Balance sheet shows Balance…

Q: Which of the following transaction will be correct in regards to Source document of a Business? O a.…

A: Source documents are sort of documents that are part of accounting and are created when any monetary…

Q: Sales revenues are usually considered earned when Select one: a. goods have been transferred from…

A: Definition: Sales Revenue: Sales Revenue is considered as the income received from the sale of the…

Q: Under accrual accounting, when should a company that sells merchandise to customers recognize…

A: Accrual basis: It is one of the methods of basis of accounting that records the transactions basing…

Q: Graeter’s uses information to track cash, sales revenue, and expenses on a daily basis. How does…

A: As a result of technological advancement, many businesses have begun using technology in almost…

Q: is an amount earned by business in the process of selling goods. O a. Expenses O b. Accounts…

A: The answer for the multiple choice question and relevant explanation are presented hereunder :

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: If a company debits Cash and credits Sales Revenue, it is recording the.

A: Real accounts are those assets and liabbilties whose balance is carried forward from one accounting…

Q: Classify the following activities as part of the identifying (I), recording (R), or communicating…

A: Financial Accounting:   It refers to the process of recording the financial transactions of the…

Q: Use the following abbreviations to indicate the journal in which you would record transactions a…

A: The general journal is maintained for recording the transactions which do not fall under sales,…

Q: The sales journal records the daily transactions of a business pertaining to: O a. Sales…

A: Sales journal  records revenue from sale of  goods or services.

Q: According to concept of accounting, financial or business transaction is recorded: a ) when cash is…

A: in accounting is recording business transactions and arranging and preparing and storing bussiness…

Q: The accountant of South Boot Company recorded a transaction by debiting Accounts Payable and…

A: Journal entries refer to the recording of transactions in an appropriate way. With the help of…

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: Accounts receivable are best described as a. Liabilities of the company that represent the amount…

A:

Q: When using a manual accounting information system, which of the following transactions would be…

A: Journal : A journal is a book of original entry where all the monetary transactions in the form of…

Q: The current assets are :- a - ending raw materials inventory. b - account receivable. c - notes…

A: Current assets are assets that are in cash form or that can be converted into cash in short period…

Q: 4. The operating cycle is typically defined as the time it requires to convert a. cash to inventory…

A: OPERATING CYCLE REFERS TO NUMBER OF DAYS A COMPANY TAKES IN CONVERTING ITS INVENTORIES TO CASH . IT…

Q: Instructions: Classify each transaction whether they are operating, financing or investing. After…

A: Transactions will be classified under 3 major heads, Operating activity, Investing activity and…

Q: One of the purposes of the statement of cash flows is to ________. A to calculate inventory…

A: Statement of Cash flow : It is one of the financial statements of the business and is prepared for…

Q: A statement of retained earnings shows:     The changes in the Cash account occurring during the…

A: Following is the answer to the given question

Q: Which of the following transactions is affecting the current asset of accounts receivable?

A: a). Journal entry for inventory sold on the account: Accounts receivable A/c Dr.... xxx…

Q: The general journal records the daily transactions of a business pertaining to: O a. Sales…

A: A journal entry is the first step in recording financial transactions in the books of business…

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 statement is true regarding the cash basis of accounting? a. Revenues are reported in the…

A: Cash basis refers to a major accounting method that recognizes revenues and expenses at the time…

Q: Which of the following balance sheet items are commonly associated with the purchases and cash…

A: The balance sheet is one of the financial statements of a company, that is, prepared at the end of…

Q: The current assets of FDN Company's Statement of Financial Position would have the following: Trade…

A: Current assets: Current assets are all those assets that are expected to be sold or used as a result…

Q: The cash basis of accounting records revenues and expenses when the cash is exchanged, while the…

A: Accrual basis of accounting: Accrual basis of accounting refers to recognizing the expenses and…

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: The income statement is drawn up from the figures in the _________________ Select one: a. Accounts…

A: An income statement may be defined as that type financial statement which is prepared to ascertain…

Q: The recognition principal of accrual accounting says revenue is recognized: Based on the firm’s…

A: Solution- The accrual basis of accounting recognizes revenues when earned (a product is sold or a…

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: Revenue Cycle is: Select one: a. None of the above b. A recurring set of business activities and…

A: Solution: Revenue cycle is  "A recurring set of business activities and related information…

Q: In simpler terms, revenue is the inflow of cash or accounts receivable that a business receives when…

A: Financial Accounting:   It refers to the process of recording the financial transactions of the…

Q: What does the phrase "Revenue is recognized at the point of sale" mean? (Assume the company reports…

A: Accrual Basis of Accounting: The accrual basis of accounting is a method of accounting where the…

Q: One output of the accounting information system is the balance sheet. Transactions commonly…

A: Accounting information system is one of the important system that is being used for maintaining and…

Q: Which one of the following commences on the day inventory is purchased and ends on the day the…

A: Inventory period: It is a measure of the average number of days the inventory is held.

Q: Which of the following transactions will be recorded in cash payment journal? a. Receipt of income…

A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…

Q: Required Given that prudence is the main consideration, discuss under what circumstances, if any,…

A: Accrual Basis of accounting refers to the accounting, where the transactions are recorded as and…

Q: The accountant for Tom's Tax Preparation, Inc. recorded a transaction by debiting Accounts Payable…

A: The question is based on the concept of business accounting.

Q: Under accrual-basis accounting, revenues are always recognized when Cash is received Earned The…

A: Lets understand the basics. There are two type of accounting systems are followed which are, (1)…

Q: Which of the following transaction will be correct in regards to Source document of a Business? a.…

A: The source documents the main place where transactions are recorded.