With the Exception of Such Industries as Autos, Steel, or Forest

question 116

Multiple Choice

With the exception of such industries as autos, steel, or forest products, most long-range plans cover a period of:

• A)2 to 5 years.
• B)1 year.
• C)6 to 8 months.
• D)5 to 10 years.

---

Definitions:

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within a year or within the business's normal operating cycle if longer than a year.

Accruals

Accounting method recognizing revenue when earned and expenses when incurred, regardless of when cash transactions occur.

Doubtful Accounts

Receivables that a company is unlikely to collect, representing amounts owed by customers that might eventually be written off as bad debts.

Operating Activities

Business actions that relate directly to the production, sale, and delivery of a company's goods or services, reflected in its cash flow.