Question: which statement is true about the cash cycle a. the time needed from acquiring inventory from suppliers into sell inventory into customers b. as longer

which statement is true about the cash cycle

a. the time needed from acquiring inventory from suppliers into sell inventory into customers

b. as longer cycle as better into the firm

c. the time needed from acquiring inventory from suppliers into collect cash from customers

d. the time needed from acquiring inventory from suppliers into collect cash from customers and pay suppliers

if total assets is $ 500,000, current liabilities is $100,000 and long term liabilities is $200,000. if sales is $2,500,000. the sales revenue to capital employed is

a. 25 times

b. 6.25 times

c. 8.34 times

d. 5 times

which of the following cause a decrease in returns on capital employed

a. an increase in trade payable

b. decrease in non-current assets

c. an increase in long term borrowings

d. increase in net income

In 2010 Jackson Corporation reported income from operations $180,000, interest expense $50,000, and income tax expense $40,000. Jacksons times interest covering ratio was:

a. 5.4 times.

b. 3.6 times.

c. 4.6 times.

d. 4.4 times.

if payable days moved from 50 days into 80 days. All of the followings true except

a. the change is considered as a short term financing for the company

b. the firm reputation might be at risk

c. this may reflect the inability of the firm to pay suppliers

d. the change is unfavorable for the firm

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