Suppose That the Inventory Period Is 50 Days, the Accounts

question 284

Multiple Choice

Suppose that the inventory period is 50 days, the accounts receivable period is 40 days, and the cash cycle is 55 days. What is the accounts payable period?

• A) 35 days
• B) 45 days
• C) 55 days
• D) 90 days
• E) 135 days

Comprehend the steps of the accounting cycle, starting from transaction analysis to the preparation of financial statements.

Identify and apply the concepts of fiscal and calendar years in accounting periods.

Recognize and create basic journal entries for various business transactions.

Understand the role of the general journal as the book of original entry.

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Definitions:

Decision Making

The cognitive process of selecting a course of action among several alternatives, often involving judgment, evaluation, and reasoning.

Organizations

Groups or entities that are structured and managed to meet a particular objective or set of objectives, ranging from businesses to nonprofits.

Boss

A person who is in charge of a worker or organization and has the authority to make decisions and give orders.

Explicit Memory

A type of long-term memory involving conscious recall of facts and experiences.