The event which leads to creation of Accounts payable in Cash conversion cycle of a manufacturing firm is: a. Procurement of raw materials on credit b. Finished products sold on credit c. None of these d. Labour converts material into finished goods
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- The Pet Store experienced the following events for the Year 1 accounting period: 1. Acquired $55,000 cash from the issue of common stock. 2. Purchased $78,000 of inventory on account. 3. Received goods purchased in Event 2 FOB shipping point; freight cost of $1,400 paid in cash. 4. Sold inventory on account that cost $44,000 for $83,000. 5. Freight cost on the goods sold in Event 4 was $1,200. The goods were shipped FOB destination. Cash was paid for the freight cost. 6. Customer in Event 4 returned $5,360 worth of goods that had a cost of $2,730. 7. Collected $68,060 cash from accounts receifable. 8. Paid $64,000 cash on accounts payable. 9. Paid $3,360 for advertising expense. 10. Paid $3,570 cash for insurance expense. Required a. Which of these events affect period (selling and administrative) costs? Which result in product costs? If neither, label the transaction NA. Transaction CostThe largest expense of most manufacturing firms is?a. Salaries Expenseb. Amortization Expensec. Rent Expensed. Cost of Goods Sold1-The amount of money paid for the use of borrowed capital or from the money that has been loan. a. Interest b. Interest rate c. Principal 2-The costs that are repetitive and occur when an organization produces goods or services on a continuing basis. a. Sunk cost b. Recurring cost c. Direct cost 3-The costs that have occurred in the past and have no importance in the estimates of future costs and revenues related to alternative course of action. a. Sunk cost b. Recurring cost c. Direct cost 4- It is calculated using the principal only without considering the interest accrued in preceding period. a. Simple interest b. Compound interest c. Annuity 5- It is an expression of the increase in the cost of goods and services from one year to the next.…
- Working capital required for the business is equal to Operating Expenses Raw Material and Finished Goods Stock Raw Material, WIP, Finished Goods, Receivables less payables ReceivablesIn the economic order quantity model the return on capital that is forgotten when it is invested in inventory is a/an a. Carrying costs b. Exclusion in the EOQ computation c. Irrelevant cost d. Order costMatch each of the statements to the correct stem. 1. In a make or buy decision, a. The selling price is a cash inflow 2. In a special order decision, b. The selling price is cashoutflow 3. In a process further decision, c. The cost of the joint product is not relevant.
- The average length of time between purchase of raw materials and recruit labour and the payment of cash for them is known as: a. Inventory Conversion period O b. Receivable collection period C. Average Payment period O d. None of theseRevenue Cycle is:Select one:a. None of the aboveb. A recurring set of business activities and related to the process starting from finalizing product design and finishing off at cost accounting.c. A recurring set of business activities and related data processing operations associated with the purchase of and payment for goods and services.d. A recurring set of business activities and related information processing operations associated with providing goods and services to customers and collecting cash in payment for those sales.The amount of revenue that is foregone from an alternative use of cash is called a.sunk cost b.differential revenue c.opportunity cost d.differential profit
- A supply chain has the following information:(a). Compute the total supply chain throughput time for all the entities from beginning to end.b. Compute the cash-to-cash cycle time for each of thefour entities separately. Based on this calculation, who is benefiting the most?c. Compute the total delivered unit cost in the supplychain from beginning to end. How much profit isthere in the supply chain?Which of the following statements is false? Multiple Choice In general, the term expense is used for managerial purposes, while the term cost refers to external financial reports. An opportunity cost is the benefit forgone by selecting one alternative over another. An outlay cost is a past, present, or future cash outflow. A cost is a sacrifice of resources.41) Which two items will normally appear at some point in time on the Income Statement but NOT in Cash Distributions ? Raw Material Purchases and Indirect Labor O Direct Labor and Manufacturing Overhead Factory Maintenance costs and Factory Rent O Depreciation and Bad Debt Expense