• 2022-06-12
    A company extends its trade credit terms by four days to all its credit customers. These credit customers aremost likelyto experience a four-day:
    A: decrease in their net operating cycle.
    B: increase in their operating cycle.
    C: decrease in their operating cycle.
  • A

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    • 0

      Which<br/>one of the following will not affect the operating cycle?() A: decreasing<br/>the payables turnover from 7 times to 6 times B: increasing<br/>the days sales in receivables C: decreasing<br/>the inventory turnover rate D: increasing<br/>the average receivables balance E: decreasing<br/>the credit repayment times for the firm’s customers

    • 1

      What<br/>is a credit boom____? A: An explosion in a credit cycle, which can increase or decrease<br/>lending in the short-run B: Essentially a lending spree on the part of banks and other financial<br/>institutions C: When credit card receivables rise due to low initial interest rates D: The signal of the end of a credit spree, with credit contracting<br/>rapidly

    • 2

      The four types of costs that are found in the Life Cycle Costing concept are ______. A: operating/maintenance, discard, direct, and variable B: indirect, auxiliary, development, and production C: operating/maintenance, development, discard, and production D: indirect, auxiliary, indirect, and direct

    • 3

      How does IAS 1 define the operating cycle of an entity?

    • 4

      Liabilities that are required to be paid within a year are classified as current liabilities. If the normal operating cycle is longer than a year, liabilities that are required to be paid during the normal operating cycle are classified as current liabilities.