The Following Statements Are True Regarding the Operating Cycle of a Merchandising

question 238

Multiple Choice

The following statements are true regarding the operating cycle of a merchandising company except:

• A) The operating cycle is shortened by credit sales.
• B) The operating cycle ends with the collection of cash from the sale of merchandise.
• C) The operating cycle begins with the purchase of merchandise.
• D) The operating cycle can vary in length among different merchandising companies.
• E) The operating cycle sometimes involves accounts receivable.

Evaluate the effects of international policies and tariffs on the U.S. economy during the depression.

Assess the role of the federal government in regulating industry and labor relations in the 1930s.

Understand the significance of public works and relief projects in economic recovery efforts.

Recognize the influence of the depression era on minority employment and legislation.

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Definitions:

Price Change

An adjustment in the cost of a good or service, which can be an increase or decrease from its previous amount.

Perfect Complements

Goods that are always consumed together in fixed proportions, where the utility derived from one good enhances the utility derived from the other.

Income Effect

The impact on an individual's or economy's purchasing power from an increase or decrease in income, which subsequently affects the quantity demanded for goods and services.

Substitution Effect

The change in consumption that occurs when a price change for one good causes a consumer to replace that good with a more or less expensive substitute.