A firm's collection period is 46 days; its overall terms are 30 days. This indicates _____
a. slow-turning accounts receivable
b. fast-turning accounts receivable
c. average-turning accounts receivable
d. full paying of accounts payable
a
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Which of the following best describes a company's operating activities?
A) Operating activities are cash flows directly related to earning income. B) Operating activities are necessary to provide the money to start a business. C) Operating activities are needed to provide the valuable assets required to run a business. D) Operating activities represent the right to receive a benefit in the future.
Which of the following is a difference between off-price retailers and specialty shops?
a. Off-price retailers replenish inventory items that are sold, while specialty shops never replenish inventory items that are sold. b. Off-price retailers employ a hybrid retail operating model, while specialty shops employ a mass merchandising retail operating model. c. Off-price retailers focus on lean inventory management, while specialty shops are supported by an agile approach to inventory. d. Off-price retailers adopt a high-service approach, while specialty shops de-emphasize customer service and product selection.
The stock of raw materials, inputs, and component parts that an organization has on hand at a particular time is referred to as
A. holdings. B. overflow. C. product. D. inventory. E. storage.
Marco Manufacturing contracted to sell Kurtz Industries 3,000 iron clasps. The contract specified: F.O.B. Kurtz Industries. Upon arrival and inspection, the goods were rejected by Kurtz Industries because they did not conform to the contract specifications. In transit back to Marco Manufacturing, the common carrier's truck overturned and completely destroyed the clasps. Which statement is correct?
A. Marco may sue Kurtz for the contract price, as risk of loss transferred to Kurtz at the F.O.B. point. B. Kurtz will not be liable for the purchase price. The risk of loss had not yet transferred since the goods were nonconforming. C. The loss will be split between the parties on a 50/50 basis. D. The loss will be assigned to the party who can best bear the loss.