Ed Czerni Works in the Public Relations Office of a Company

question 21

Multiple Choice

Ed Czerni works in the public relations office of a company that manufactures floor covering. Czerni does not produce, sell, or distribute the products his company makes. He is in which of the following positions?

• A) line
• B) centralized
• C) functional
• D) staff

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Definitions:

Operating Cycle

The operating cycle, also known as the cash conversion cycle, is the time it takes for a company to purchase inventory, sell products or services, and collect the cash from these transactions.

Receivables

Money owed to a company by its customers or other parties for goods or services delivered but not yet paid for.

Revenues

Revenues refer to the total income generated by a company from its normal business operations, such as the sale of goods or provision of services.

Reversing Entries

Accounting entries that are made at the beginning of an accounting period to reverse or cancel out adjusting entries made at the end of the previous accounting period.