What is the operating cycle of a business? How does this impact the classification of assets into current and noncurrent categories?
The operating cycle depends on the nature of a company's business. It encompasses the period of time from the investment of cash in inventory to the collection of account receivables from the sale of products. This can take a long time, like the production of a cruise ship, or a very short time, like the preparation of restaurant food. Current assets are realized in cash, or sold, or consumed during the operating cycle or within one year if the cycle is shorter than one year.
You might also like to view...
One of the three aspects of networks that shape power is tie content. Define the "content" and describe the concept.
What will be an ideal response?
Select the definition of control.
A. Control is the process of giving people additional tasks to do at the same time to alleviate boredom. B. Control is people's perceived likelihood that their efforts will enable them to attain their performance goals. C. Control is the process of applying a consequence that increases the likelihood of a person repeating the behavior that led to it. D. Control refers to the expected performance for a given goal. E. Control is any process that directs the activities of individuals toward the achievement of organizational goals.
Unlike physical asset markets, which deal with products such as wheat, autos, real estate, and machinery, financial asset markets deal with stocks, bonds, mortgages, and other claims on real assets with respect to the distribution of future cash flows generated by such assets.
Answer the following statement true (T) or false (F)
Escribo Marketing holds annual blood donation camps and conducts other similar charitable events in educational institutions. Escribo Marketing is using people marketing.
Answer the following statement true (T) or false (F)