The Operating Cycle Will Increase with All of the Following

question 52

Multiple Choice

The operating cycle will increase with all of the following changes EXCEPT:

• A)the cost of goods sold increases.
• B)the level of accounts receivable increases.
• C)the level of inventory increases.
• D)All of these will increase the operating cycle.

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Definitions:

Bank Account Numbers

Unique identifiers assigned to an account in a bank, used for identification and processing financial transactions.

Employer's Quarterly Federal Tax Return

A form filed by employers to report income taxes, Social Security tax, or Medicare tax withheld from employee's paychecks, and to pay the employer's portion of Social Security or Medicare tax.

Form 941

A federal tax form used by employers to report quarterly federal income tax withheld from employees' wages and payroll taxes.

Form 940

A tax form filed by employers to report annual Federal Unemployment Taxes (FUTA).