If the Operating Cycle of a Business Is Fifteen Months

question 47

Multiple Choice

If the operating cycle of a business is fifteen months, which of the following statement is true?

• A) Cash set aside for a purchase of equipment will be shown as a current asset.
• B) A note receivable that is due one year and two months from the balance sheet date will be shown as a current asset.
• C) Balance sheets should be prepared more often than income statements.
• D) A note, that is payable by the business two years from the balance sheet date, will be shown as a current liability.

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Definitions:

Wilhelm Wundt

Considered the father of modern psychology, he established the first psychological laboratory in Leipzig, Germany, in 1879, emphasizing the scientific study of observable mental processes.

Naturalistic Observation

A descriptive research method in which researchers observe and record behavior in its natural setting, without attempting to influence or control it.

Describing Behavior

The process of observing and recounting actions or responses of individuals or groups in a detailed and systematic manner.

Potential Employees

Individuals who have the possibility or suitability to be hired for a job but have not yet been employed by the organization.