Question 1 The operating cycle of a merchandising company is A. always one year in length....
Question 1
The operating cycle of a merchandising company is
A. always one year in length.
B. ordinarily longer than that of a service company.
C. about the same as that of a service company.
Homework Answers
Option 'B' is correct
The Operating cycle of a Merchandising company is longer than that of a service company. Service company has a shorter period when compared to operating cycle of a service company.
Operating cycle involves = Cash --> Buy Inventory --> Inventory---> Sell Inventory--> Accounts Receivable-->Cash
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Question 1
The operating cycle of a merchandising company is
A. always one year in length....
Kimmel, Accounting, 7e IS Help I System Announcements Practice Question 01 The operating cycle of a...
Kimmel, Accounting, 7e IS Help I System Announcements Practice Question 01 The operating cycle of a merchandising company is ordinarily shorter than that of a service company. O True O False Click if you would like to Show Work for this question: Open Show Work 11 LINK TO TEXT Type here tosearch
which of the following statement regarding the operating cycle of a merchandising company is not true?...
which of the following statement regarding the operating cycle of a merchandising company is not true? a) the operating cycle begins with the purchase of merchandise b) the operating cycle is shorted by credit sales c) the operating cycle sometimes accounts receivable d) the operating cycle ends with the collection of Cash from sales of merchandise
True or False (A=Ture; B=False) 1 A merchandising company's operating cycle begins with the acquisition of...
True or False (A=Ture; B=False) 1 A merchandising company's operating cycle begins with the acquisition of inventory and ends with the cash collection from sales. 2 Inventory shrinkage is the difference between inventory in the warehouse and inventory counted. 3 FOB shipping point means that ownership of goods passes to the buyer when the goods leave the seller's place of business. 4 In a periodic inventory system, two journal entries are required to record the sale of inventory. 5 The...
Obligations to be paid within one year or the company's operating cycle, whichever is longer, are:...
Obligations to be paid within one year or the company's operating cycle, whichever is longer, are: Multiple Choice o ) Current assets. o ) Current liabilities. o Earned revenues. o Operating cycle liabilities o
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 8 1 pts On January 1, Year 1, ABC Merchandising Company was started. The company...
Question 8 1 pts On January 1, Year 1, ABC Merchandising Company was started. The company experienced the following events during the first year of operation: 1. Started the business by issue common stock for $1,000 cash. 2. Purchased $950 of inventory on account. 3. Sold merchandise costing $370 for $440 on account. 4. Collected $160 cash from accounts receivable. 5. Pald $700 of outstanding accounts payable. What is the value of ABC Merchandising Company's ending Accounts Receivable for Year...
Question 7 1 pts On January 1, Year 1, ABC Merchandising Company was started. The company...
Question 7 1 pts On January 1, Year 1, ABC Merchandising Company was started. The company experienced the following events during the first year of operation: 1. Started the business by Issue common stock for $1,000 cash. 2. Purchased $250 of inventory on account. 3. Sold merchandise costing $200 for $220 on account. 4. Collected $140 cash from accounts receivable. 5. Pald $180 of outstanding accounts payable. What is the value of ABC Merchandising Company's Cost of Goods Sold expense...
The following items appear on the balance sheet of a company with a one-year operating cycle....
The following items appear on the balance sheet of a company with a one-year operating cycle. Identify the proper classification of each item as follows: C if it is a current liability, L if it is a long-term liability, or N if it is not a liability. Classification C Item | 1. FICA—Social Security Taxes Payable 2. Employee Federal Income Taxes Payable 3. Notes payable (mature in five years). | 4. Employee Medical Insurance Payable 5. FICA—Medicare Taxes Payable 6....
Kimmel, Accounting, 7e IS Help I System Announcements Practice Question 01 The operating cycle of a merchandising company is ordinarily shorter than that of a service company. O True O False Click if you would like to Show Work for this question: Open Show Work 11 LINK TO TEXT Type here tosearch
True or False (A=Ture; B=False) 1 A merchandising company's operating cycle begins with the acquisition of inventory and ends with the cash collection from sales. 2 Inventory shrinkage is the difference between inventory in the warehouse and inventory counted. 3 FOB shipping point means that ownership of goods passes to the buyer when the goods leave the seller's place of business. 4 In a periodic inventory system, two journal entries are required to record the sale of inventory. 5 The...
Obligations to be paid within one year or the company's operating cycle, whichever is longer, are: Multiple Choice o ) Current assets. o ) Current liabilities. o Earned revenues. o Operating cycle liabilities o
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 8 1 pts On January 1, Year 1, ABC Merchandising Company was started. The company experienced the following events during the first year of operation: 1. Started the business by issue common stock for $1,000 cash. 2. Purchased $950 of inventory on account. 3. Sold merchandise costing $370 for $440 on account. 4. Collected $160 cash from accounts receivable. 5. Pald $700 of outstanding accounts payable. What is the value of ABC Merchandising Company's ending Accounts Receivable for Year...
Question 7 1 pts On January 1, Year 1, ABC Merchandising Company was started. The company experienced the following events during the first year of operation: 1. Started the business by Issue common stock for $1,000 cash. 2. Purchased $250 of inventory on account. 3. Sold merchandise costing $200 for $220 on account. 4. Collected $140 cash from accounts receivable. 5. Pald $180 of outstanding accounts payable. What is the value of ABC Merchandising Company's Cost of Goods Sold expense...
The following items appear on the balance sheet of a company with a one-year operating cycle. Identify the proper classification of each item as follows: C if it is a current liability, L if it is a long-term liability, or N if it is not a liability. Classification C Item | 1. FICA—Social Security Taxes Payable 2. Employee Federal Income Taxes Payable 3. Notes payable (mature in five years). | 4. Employee Medical Insurance Payable 5. FICA—Medicare Taxes Payable 6....
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