The Difference Between a Firm's Operating Cycle and Its Cash

question 39

Multiple Choice

The difference between a firm's operating cycle and its cash cycle is

• A) its account receivable days.
• B) its accounts payable days.
• C) its inventory days.
• D) there is no difference between the cash and operating cycles.

Explain the kinesthetic and vestibular senses' roles in movement and balance.

Understand the psychological processes involved in attention and habituation.

Describe the theories and mechanisms of pitch and color perception.

Recognize the application of psychological principles in everyday situations, including sensory adaptation and perceptual processes.

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Definitions:

Permanent Account

An account in the general ledger that is not closed at the end of the accounting period, with its balances carried over into the next period.

Temporary Account

A temporary account is an account that is closed at the end of each accounting period, with its balances transferred to permanent accounts, used to track revenues, expenses, and withdrawals during the period.

Retained Earnings

Cumulative net income minus dividends paid to shareholders, representing the business's reinvested profits.

Accounting Information System

A structure that collects, stores, manages, processes, retrieves, and reports financial data for its users, facilitating informed business decisions.