Asked by Quinn Duncan on Jul 12, 2024
Verified
Which of the following statements about a company's operating cycle is not true:
A) Non-current items are those expected to come due within one year or the company's operating cycle.
B) The operating cycle is the time span from when cash is used to acquire goods and services until cash is received from the sale of goods and services.
C) The length of a company's operating cycle depends on its activities.
D) For a merchandiser selling products,the operating cycle is the time span between paying suppliers for merchandise and receiving cash from customers.
E) Most operating cycles are less than one year.
Operating Cycle
The average time period between the acquisition of inventory and the collection of cash from accounts receivable, reflecting the efficiency of a company's operations.
- Comprehend the role of operating cycles in businesses and how it affects financial reporting and decision-making.
Verified Answer
YK
Yakup Kaan SaglamJul 15, 2024
Final Answer :
A
Explanation :
Non-current items are items that are not expected to come due within one year or the company's operating cycle. They are typically long-term assets or liabilities.
Learning Objectives
- Comprehend the role of operating cycles in businesses and how it affects financial reporting and decision-making.