Cycle Efficiency

question 149

Multiple Choice

Cycle efficiency:

• A) Is the ratio of value-added time to total cycle time.
• B) Is the ratio of value-added time to non-value-added time.
• C) Is the ratio of process time to total cycle time.
• D) Cannot be used in conjunction with other analytical tools.
• E) Is the same as the cycle time.

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Definitions:

Post-closing Trial Balance

A summary of all account balances after closing entries are made, used to check the balance of debits and credits.

Adjusted Trial Balance

A list of all accounts and their balances after adjusting entries are made, used in the preparation of financial statements.

Closing Entry

Journal entries made at the end of an accounting period to transfer the balances of temporary accounts to permanent accounts, thereby preparing the books for the next period.

Income or Loss

Income or loss refers to the financial result of a company’s operations over a specific period, indicating profitability or deficit.