The net operating cycle is:
A. inversely related to a company’s need for liquidity.
B. the length of time it takes for an investment in inventory to be returned from collected accounts.
C. the sum of the number of days of inventory and the number of days of receivables, less the number of days of payables.
Ans: C. the sum of the number of days of inventory and the number of days of receivables, less the number of days of payables.
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Frank Company has the following per unit original costs and replacement costs for its inventory: Part A: 50 units with a cost of $5, and replacement cost of $4.50 Part B: 75 units with a cost of $6, and replacement cost of $7.00 Part C: 160 units with a cost of $3, and replacement cost of $2.00 Using the lower of cost or market method applied to individual items at the end of the year, the company must:
A) Debit Inventory for $75 B) Debit Cost of Goods Sold for $110 C) Credit Inventory for $185 D) Credit Inventory for $110 E) Credit Cost of Goods Sold for $185
If the risk-free rate of return is less than the inflation rate, the real rate of return is negative
Indicate whether the statement is true or false.