Which of the Following Statements About a Company's Operating Cycle

question 71

Multiple Choice

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.

Explore the conditions under which monopolies may earn zero economic profits in the long-run equilibrium.

Understand the elasticity of the monopolist’s demand curve and its implications for pricing and revenue.

Understand the pricing strategies and behavior of a monopolist.

Comprehend the impact of marginal revenue and marginal cost on monopolist's profit maximization.

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Definitions:

Planning and Control Tool

Instruments or techniques used in the management process to set objectives, assess future trends, and oversee progression towards desired outcomes.

Acid-Test Ratio

A financial metric used to determine a company's short-term liquidity situation by comparing its most liquid assets, excluding inventory, to its current liabilities.

Current Assets

Short-term assets that are expected to be converted into cash, sold, or consumed within one year or within the business's operating cycle, including cash, inventory, and receivables.

Inventory

The total amount of goods and materials held in stock by a business or organization.