The cash conversion cycle is equal to the days of sales outstanding plus the days of sales in
inventory plus the days of payables outstanding.
Indicate whether the statement is true or false
FALSE
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Experienced negotiators find weekends best for negotiations.
Answer the following statement true (T) or false (F)
Which of the following is a lifestyle symptom associated with revenue-related fraud?
a. Too little cash is collected relative to reported revenues. b. Weaknesses in the cutoff processes or other key accounting processes. c. Untrue responses by management to queries about revenue-related accounts. d. Executives' personal net worth tied up in company stock.
Which of the following is an example of a capital expenditure?
A) Cleaning the carpet in the front room B) Tune-up for a company truck C) Replacing an engine in a company car D) Replacing all burned-out light bulbs in the factory
On January 1, a company issues bonds dated January 1 with a par value of $300,000. The bonds mature in 5 years. The contract rate is 9%, and interest is paid semiannually on June 30 and December 31. The market rate is 8% and the bonds are sold for $312,177. The journal entry to record the first interest payment using the effective interest method of amortization is:
A. Debit Bond Interest Expense $14,717.70; credit Premium on Bonds Payable $1,217.70; credit Cash $13,500.00. B. Debit Interest Payable $13,500; credit Cash $13,500.00. C. Debit Bond Interest Expense $12,282.30; debit Premium on Bonds Payable $1,217.70; credit Cash $13,500.00. D. Debit Bond Interest Expense $12,487.08; debit Premium on Bonds Payable $1,012.92; credit Cash $13,500.00. E. Debit Bond Interest Expense $12,487.08; debit Discount on Bonds Payable $1,012.92; credit Cash $13,500.00.