The Lag from Ordering an Item Until It Is Received

question 207

Multiple Choice

The lag from ordering an item until it is received and ready for use is called:

• A)purchase cycle.
• B)lag time.
• C)order handling time.
• D)order cycle time.

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Definitions:

Retained Earnings

The portion of net income that is not distributed to shareholders as dividends but is kept by the company for reinvestment.

Fiscal Year

A fiscal year is a 12-month period used for accounting purposes, often not aligning with the calendar year, to report financial performance.

Ledger

A comprehensive collection of a company's financial accounts, where all transaction data is recorded, including debits and credits.

Adjusting Entries

Journal entries made at the end of an accounting period to record revenues to the period they are earned and expenses to the period incurred.