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.
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This principle states to compensate the insured organization or private individual so that their financial position is not affected by the loss. This principle means that someone seeking to take out insurance should not be able to earn a profit from the loss incurred. Example; an office fire ruins computers and therefore the insurance company would compensate only for the value of the equipment and they would not buy a brand new computer as this would mean that the insured individual or business has profited from the fire caused.
Answer:
underestimated inventory
net income decrease
higher storage expenses
Explanation:
decrease in net income since it could not be sold
higher expenses for storage to maintain inventory
Answer:
D) All of the above
Explanation:
In a job interview, the interviewer must try to determine if a candidate fits the job profile or not, and he/she really has a very limited amount of time. A very effective way of knowing someone is how that person reacts under pressure when faced with really tough and problematic situations. Being interviewed is already tough, and a really difficult question that doesn't necessarily have a right or wrong answer doesn't make it easier.
Many times the applicant's reaction is more important than the answer itself.
<span>One result of the global economy is that trade
between the United States and other countries has decreased. </span>
