Accounting periods of greater than a year are called interim periods
Indicate whether the statement is true or false
F
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Services are provided for customers who pay for the services immediately. For this transaction, identify the effect on the accounting equation
a. Assets increase and liabilities increase. b. Assets increase and stockholders' equity increases. c. Liabilities increase and stockholders' equity decreases. d. Liabilities decrease and assets decrease.
All of the following are advantages of real-time processing of sales except
a. The cash cycle is shortened b. Paper work is reduced c. Incorrect data entry is difficult to detect d. Up-to-date information can provide a competitive advantage in the marketplace
Selected information from the accounting records of Monroe Manufacturing Company follows: Net sales ............................................ $3,600,000 Cost of goods sold ................................... 2,400,000 Inventories at January 1 ............................. 672,000 Inventories at December 31 ........................... 576,000 What is the number of days' sales in average
inventories for the year? a. 102.2 b. 94.9 c. 87.6 d. 68.1
An organization's profitability is an example of a lag indicator
Indicate whether the statement is true or false