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Indicate whether each of the following statements is true or false.
_____ a)Other things being equal,an operating cycle of 49 days is more desirable than an operating cycle of 120 days.
_____ b)The operating cycle is longer for a winery than a fast-food restaurant.
_____ c)The length of an operating cycle is not relevant to the profitability of a business.
_____ d)The length of an operating cycle equals the average days to collect accounts receivable.
_____ e)The length of an operating cycle is computed by adding the sum of the average days in inventory and the average number of days to collect accounts receivable.
Cash
A form of currency that can include bills, coins, and balances in bank accounts that are available for immediate use.
Joint Operators
The parties to a joint operation.
Expenses
Decreases in assets or increases in liabilities, that result in decreases in equity, other than those relating to distributions to holders of equity claims.
Cash Balance
The amount of cash held by a company in its financial accounts at a specific point in time, reflecting its immediate liquidity position.
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