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3 years ago

For the purpose of classifying liabilities as current or noncurrent, the term operating cycle refers to

2 answers:

6 0

The right answer to this question is <em><u>B) The period between the purchase of goods and the conversion of this merchandise back to cash. </u></em>

Because current liabilities or non-current liabilities are influenced by income from the company.

<h2>Further explanation </h2>

the operational cycle refers to the days that are required for a company to receive inventory, sell that inventory and collect cash from the sale of that inventory. This cycle plays an important role in determining the efficiency of business performance.

The operating cycle utilizes receivables and inventory. This is often compared to the cash conversion cycle because it uses the same parts.

However, what makes them different is that the operating cycle analyzes these components from the perspective of how well the company manages operational capital, rather than the impact these components have on cash.

This is called the operation cycle because the process of producing/buying inventory, selling it, recovering customer's cash, and using that cash to buy/produce inventory, is repeated during the company's operations.

The operating cycle is useful for estimating the amount of working capital that a company needs to maintain or grow its business. Another useful measure used to evaluate the efficiency of a company's operations is the cash cycle.

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Operation cycle brainly.com/question/14249612, brainly.com/question/13188114

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Class: High School

Subject: Business

Keyword: operating cycle

Dafna11 [192]3 years ago

3 0

Answer: Option B

Explanation: In simple words, operating cycle refers to the time taken by an organisation from converting its initial purchase of inventory to the cash payment received from selling that inventory. In other words, it is the cycle from initial outlay of cash to final inflow of cash.

Thus, from the above we can conclude that the correct option is B.

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Answer and Explanation:

Clude had purchased the raw land three years ago for $150000 and treated it like a inventory. she constributed the property to south peak investments LLC in exchange for 10% profit interest. but south peak will hold it for investment purpose.

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3 years ago

Suppose that the economy is in a long-run equilibrium at a price level of 100 and full-employment real GDP of $500 billion. An e

Anna35 [415]

Government purchases would need to: decrease by $20 billion.

<h3>What is Marginal Propensity to Consume ?</h3>

Marginal Propensity to Consume (MPC) measures the proportionate rise in the consumption with increase in income or we can say it measures the proportion of extra pay that is spent on consumption of goods and services rather than saving it.

Marginal Propensity to Consume or MPC is dependent on the income level. It may vary with the income levels and it can be seen that the MPC is lower at higher income levels. MPC can be calculated by determining the change in consumption divided by the change in income.

MPC is represented by the consumption line, which is a sloped line that is formed when change in consumption is plotted on the vertical y-axis with change in income on the horizontal x-axis.

This can be illustrated from the following formula.

k = 1/ 1- MPC

Where k = Multiplier effect

MPC = Marginal Propensity to Consume

<h3>How many Types of MPC?</h3>

MPC can be classified into three types, which are

1. MPC more/greater than 1.

2. MPC equal to 1.

3. MPC less than 1.

Thus , we conclude that the amount of government purchases would have to be decreased by $20 billion.

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2 years ago

In the short-run aggregate demand and supply model, one important difference between monetary and fiscal policy is that monetary

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Answer:

a. influences aggregate supply but fiscal policy influences aggregate demand.

Explanation:

Remember, when the term monetary policy is used it refers to policies that are focused on the interest rates as well as the inflation rate, which certainly affects the money supply specifically. However, the fiscal policy is usually channelled towards aggregate demand of the economy.

Thus, it is right to say that one important difference between monetary and fiscal policy is that monetary policy affects aggregate supply but fiscal policy influences aggregate demand.

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3 years ago

Suppose you invest $20,000 by purchasing 200 shares of Abbott Labs (ABT) at $50 per share, 200 shares of Lowes Companies, Inc. (

nikitadnepr [17]

Answer:

Portfolio return = 0.035 or 3.5%

Explanation:

The portfolio return is a function of the weighted average of individual stocks' returns that form up the portfolio. The formula to calculate the portfolio return is as follows,

Portfolio return = wA * rA + wB * rB + ... + wN * rN

Where,

w represents the weight of each stock in the portfolio
r represents the return of each stock

First we need to calculate the investment of each stock,

Abbott = 200 * 50 = $10000

Lowes = 200 * 30 = $6000

Ball = 100 * 40 = $4000

Portfolio return = (10000 / 20000) * -0.10 + (6000/20000) * 0.20 +

(4000/20000) * 0.125

Portfolio return = 0.035 or 3.5%

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3 years ago

Market competition is described as a:

podryga [215]

Answer:

Survival of the fittest

Explanation:

Survival of the fittest, term made famous in the fifth edition (published in 1869) of On the Origin of Species by British naturalist Charles Darwin, which suggested that organisms best adjusted to their environment are the most successful in surviving and reproducing. Darwin borrowed the term from English sociologist and philosopher Herbert Spencer, who first used it in his 1864 book Principles of Biology. (Spencer came up with the phrase only after reading Darwin’s work.)

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3 years ago

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For the purpose of classifying liabilities as current or​ noncurrent, the term operating cycle refers to

For the purpose of classifying liabilities as current or noncurrent, the term operating cycle refers to