The production cycle ________
A) is the period from the start of cash outflow for producing a product or service until the associated cash inflow materializes from the sale of that product or service
B) begins at the time a firm first starts to make a product and lasts until the time the customer buys the product
C) starts when production begins and ends with the collection of cash from the sale of the product
D) starts when the customer takes delivery of the product and ends when the firm receives payment for the product
Answer: B
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Which of the following does not reflect the accounting and impact on the statement of cash flows for the sale or transfer of accounts receivable?
A. Receivable sales transfer future operating cash flows into the current period. B. Receivable sales create an operating cash inflow on the cash flow statement. C. Receivable sales are not reported in the statement of cash flows as they do not represent collections from the end customers and therefore are not part of operating cash flows. D. Receivable transfers that are secured borrowings have no effect on operating cash flows.
Refer to Hyundai. Hyundai’s generous warranty means that the company will assume responsibility for the cost of all repairs for 10 years or until the car has been driven an astounding 100,000 miles, generally longer than a single driver will own the car. The warranty demonstrates Hyundai’s commitment to ____, a quality-related service characteristic.
Fill in the blank(s) with correct word.
Executive officers' compensation is typically comprised of all of the following except
A) incentive bonuses. B) declared dividends. C) stock option awards. D) annual base salaries.
Kathy's property is landlocked. The only possible route to her property crosses George's farm. Which of the following property interests provides Kathy the right to use George's property?
A) conditional estate B) easement by necessity C) easement by prescription D) leasehold interest