Indicate the effect of the following on the operating cycle: Customers take longer to make the...
Indicate the effect of the following on the operating cycle: Customers take longer to make the payment
Group of answer choices
Increase
Decrease
No change
Homework Answers
The Correct Answer is Increase.
When customers take longer to make the payment then a company does not receives cash for a longer time for the goods it sells on credit. As a result of this sales realizations are delayed and it increases the operating cycle for he company.
When customers make payments on time then the operating cycle is shorter as sales realizations are timely received by the company and they get back the cash which was initially invested.
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Indicate the effect of the following on the operating cycle:
Customers take longer to make the...
Indicate the effect of the following on the operating cycle: Accounts payable goes up Group of...
Indicate the effect of the following on the operating cycle: Accounts payable goes up Group of answer choices Increase Decrease No change
Indicate the effect of the following on the cash cycle: Accounts payable turnover goes up Group...
Indicate the effect of the following on the cash cycle: Accounts payable turnover goes up Group of answer choices No change Increase Decrease
Indicate the effect of the following on the cash cycle: Accounts Receivable Period (AR Period) goes...
Indicate the effect of the following on the cash cycle: Accounts Receivable Period (AR Period) goes down Note: AR Period is also called as the Average Collection Period Group of answer choices Decrease Increase No change No answer text provided.
Indicate the effect of the following on the cash cycle: Accounts Receivable Period (AR Period) goes...
Indicate the effect of the following on the cash cycle: Accounts Receivable Period (AR Period) goes down Note: AR Period is also called as the Average Collection Period Group of answer choices Decrease Increase No answer text provided. No change
If a company’s account payable period is longer than its operating cycle, then which of the...
If a company’s account payable period is longer than its operating cycle, then which of the following is most likely to be true: A) the company can avoid paying corporate taxes on earnings retained as cash. B) the company’s future cash flows will increase at a steady rate. C) the company’s cash cycle is negative D) the company pays for its inventory before it receives payments for its sales E) the company’s cash cycle is longer than its operating cycle.
10. If a company's account payable period is longer than its operating cycle, then which of...
10. If a company's account payable period is longer than its operating cycle, then which of the following is most likely to be true: A) the company can avoid paying corporate taxes on earnings retained as cash. B) the company's future cash flows will increase at a steady rate. C) the company's cash cycle is negative D) the company pays for its inventory before it receives payments for its sales E) the company's cash cycle is longer than its operating...
10. If a company's account payable period is longer than its operating cycle, then which of...
10. If a company's account payable period is longer than its operating cycle, then which of the following is most likely to be true: A) the company can avoid paying corporate taxes on earnings retained as cash. B) the company's future cash flows will increase at a steady rate. C) the company's cash cycle is negative D) the company pays for its inventory before it receives payments for its sales E) the company's cash cycle is longer than its operating...
Question 1 Not checked Marked out of Take me to the text Indicate whether the terms...
Question 1 Not checked Marked out of Take me to the text Indicate whether the terms of the accounting equation will increase, decrease or stay the same for each transaction by choosing the appropriate action from the drop down menu. If an item is not changed by the transaction, select the option "No Change." 30.00 Transaction 1) Paid salaries for the current month 2) Purchased equipment on credit. 3) Purchased furniture using cash. 4) Additional investment into the business. 5)...
Question 4 Indicate the immediate effect each of the following transactions has on net income and...
Question 4 Indicate the immediate effect each of the following transactions has on net income and the balance in the allowance for doubtful accounts. Select your answer by clicking in the drop down box to the right of each transaction. Answer choices may be used once, more than once, or not at all. ABC Company recorded bad debt expense for the year. [Choose ] ABC Company wrote off an account receivable as uncollectible. [ Choose ] [ Choose ] ABC...
1. Indicate whether the following characteristics would increase (1), decrease (d), or have no effect (NE)...
1. Indicate whether the following characteristics would increase (1), decrease (d), or have no effect (NE) on the interest rate sensitivity of a bond when compared to otherwise identical bonds. a. A longer time to maturity. b. A higher coupon rate. C. A higher initial yield to maturity.
10. If a company's account payable period is longer than its operating cycle, then which of the following is most likely to be true: A) the company can avoid paying corporate taxes on earnings retained as cash. B) the company's future cash flows will increase at a steady rate. C) the company's cash cycle is negative D) the company pays for its inventory before it receives payments for its sales E) the company's cash cycle is longer than its operating...
10. If a company's account payable period is longer than its operating cycle, then which of the following is most likely to be true: A) the company can avoid paying corporate taxes on earnings retained as cash. B) the company's future cash flows will increase at a steady rate. C) the company's cash cycle is negative D) the company pays for its inventory before it receives payments for its sales E) the company's cash cycle is longer than its operating...
Question 1 Not checked Marked out of Take me to the text Indicate whether the terms of the accounting equation will increase, decrease or stay the same for each transaction by choosing the appropriate action from the drop down menu. If an item is not changed by the transaction, select the option "No Change." 30.00 Transaction 1) Paid salaries for the current month 2) Purchased equipment on credit. 3) Purchased furniture using cash. 4) Additional investment into the business. 5)...
Question 4 Indicate the immediate effect each of the following transactions has on net income and the balance in the allowance for doubtful accounts. Select your answer by clicking in the drop down box to the right of each transaction. Answer choices may be used once, more than once, or not at all. ABC Company recorded bad debt expense for the year. [Choose ] ABC Company wrote off an account receivable as uncollectible. [ Choose ] [ Choose ] ABC...
1. Indicate whether the following characteristics would increase (1), decrease (d), or have no effect (NE) on the interest rate sensitivity of a bond when compared to otherwise identical bonds. a. A longer time to maturity. b. A higher coupon rate. C. A higher initial yield to maturity.
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