Answer:
The length of their Cash Conversion Cycle is 68 days.
Explanation:
The lenght of cash cycle can be determine by subtracting days in which amount is payable to creditors from sum of days required to make good and days in which amount will be recovered form customers. Detail calculation is given below.
<em><u>Turnover in day</u></em>
Inventory Turnover = 365/6 = 61
Accounts Receivable Turnover = 365/8.5 = 43
Payable Turnover = 365/10.1 = 36
Cash Conversion Cycle = 61 + 43 -36 = 68 days
Answer:
product contamination.
Explanation:
Product contamination is when the product is considered not to be in its original state of not properly produced to meet customer needs. The main considerations in product contamination are malicious product tampering, accidental product contamination, adverse publicity, and government recall.
In this instance Lily feels that clothes that have been tried on by other people has been contaminated. So she goes for clothes that are at the back of the racks.
Answer:
b. None of the listed answers
Explanation:
EBITDA means earnings before interest , tax, depreciation and amortization, whereas operating is the gross profit minus all operating costs, since depreciation and amortization, which are operating costs would have been deducted in arriving at EBITDA, it means operating income and EBITDA are not the same.
Net income is gross profIt minus interest,tax ,depreciation and amortization, hence, it is a far cry from EBITDA.
Note also EBITDA is not recognized by generally accepted accounting principles (GAAP) as a performance measure
Answer:
These are the answer choices for the question:
a. Consistency
b. Verifiability
c. Timeliness
d. Comparability
And this is the correct answer choice:
a. Consistency
Explanation:
Consistency is the qualitative characteristic of accounting information that allows an investor, a stockholder, or a government official, to look at accounting data and establish that the quantities presented are all obtained in a consisten manner depending on the type of account.
This means that if cash is resported in dollars, all cash and cash equivalents are reported in dollars, and that if inventory is reported under a specific system, if that system is changed at any point in the future, stakeholders are informed.
If the opportunity cost for producing a particular good is lower for one producer than the other the former producer has comparative advantage for producing the good.
