1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
tino4ka555 [31]
2 years ago
14

Does increasing average payment period decrease operating cycle

Business
1 answer:
Aleksandr-060686 [28]2 years ago
3 0

Yes , the  increasing average payment period decreases the operating cycle

All small business owners know the importance of liquidity-have enough cash on hand to pay the bills. For this reason, business owners and managers monitor the cash conversion cycle. This shows how quickly companies are moving from paying inventory to receiving cash for sold inventory. An important factor in calculating a company's cash conversion cycle is the accounts payable period. The longer the period, the shorter the cycle.

The cash conversion cycle can be calculated using the data readily available on the company's balance sheet and income statement. It has three components. "Inventory days". On average, it indicates how long a product remains in stock before it is sold. "Accounts receivable days" or A / R days. This shows how long it takes a customer to pay an invoice. "Vendor date" or A / P date.

Learn more about Business  here: brainly.com/question/24448358

#SPJ4

You might be interested in
The Kelsh Company has two divisions--North and South. The divisions have the following revenues and expenses:
weqwewe [10]

Answer:

Company should not eliminate the North division.

Explanation:

Division B is individually making loss. Overall the company is making profit of $50,000.

After eliminating the North division the overall profit  will be converted into the loss of $140,000, because the common corporate expenses were shared by the both divisions, eliminating one cause the whole expense to be allocated to a single division.

Company should not eliminate the division as it will increase the total loss.

Working for on which decision is based is attached with this answer please find it.

4 0
3 years ago
Jonathan Mfg. adopted a job-costing system. For the current year, budgeted cost driver activity levels for direct labor hours an
Hitman42 [59]

Answer:

C. $ 7,500

Explanation:

Estimated direct labor cost                                                       $ 100,000

Estimated direct labor hours                                                          20,000 hours

Predetermined rate per direct labor hours                  $ 5 per direct labor hour

Actual hours used on a job                                                             1,500 hours

Applied overhead based on the predetermined overhead

rate per direct labor hours

$ 5 per direct labor hours * 1,500 hours                                         $ 7,500

The information regarding machine hours is not relevant to the requirements of the question.  

4 0
3 years ago
Green Grocer and Futurity Farms enter into an agreement whereby Futurity will supply Green Grocer with 200 dozen eggs every two
MatroZZZ [7]

Answer: a, provides 30 days' notice to futurist of its desire to terminate.

Explanation: for an appointment to be terminated, there would a notice prior that termination, you can't just terminate an appointment without a 30days notice.

6 0
3 years ago
There are four functions of management: planning, leading, organizing and controlling. The controlling function of management is
Fantom [35]

Answer: True

Explanation:

Proper planning without control is futile, this is because a blue print may have been put in place in the planning process but it becomes imperative for management to set up institutions or machineries to ensure that plans are executed as expected and there are remedial actions or plans in place in the event when unexpected events come up to distort achievement of the goal.

Proper control leads to achievement of organizational goals.

6 0
3 years ago
Which of the following best describes aggression?
Nastasia [14]
I'd say D, striking out verbally or physically.
5 0
3 years ago
Other questions:
  • 3. A worker within the middle income class is preparing to retire. In the year before he retired, his gross monthly earnings are
    7·1 answer
  • In modern corporations—especially those in the United States and the United Kingdom—a primary objective of corporate governance
    11·1 answer
  • If the dollar buys fewer bananas in Guatemala than in Honduras, then traders could make a profit by a. buying bananas in Hondura
    7·2 answers
  • Jolly Company produces hula hoops. Jolly Company has the following sales projections for the upcoming​ year: First quarter budge
    8·1 answer
  • Senator Brown wants to increase taxes on people with high incomes and use the money to help the poor. Senator Johnson argues tha
    12·1 answer
  • Dobles Corporation has provided the following data from its activity-based costing system: Activity Cost Pools Estimated Overhea
    6·1 answer
  • According to the interest-rate effect, aggregate demand slopes downward (negatively) because a. lower prices reduce money holdin
    15·1 answer
  • Bank charged interest on overdraft Rs. 500 journal entry​
    11·1 answer
  • Rhiannon, a long-time employee for a healthy pet food company, conducts research about what customers want for their pets. She
    9·1 answer
  • Many people who do not smoke cigars are bothered by the odor of cigar smoke. If private contracting is impossible, will too many
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!