FINANCIAL ACCT.FUND.(LOOSELEAF)
7th Edition
ISBN: 9781260482867
Author: Wild
Publisher: MCG
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Chapter 4, Problem 2E
To determine
Introduction: Operating cycle is the time taken by the company right from buying goods, selling them, and receiving cash. The length of the operating cycle depends on the type of business, but a shorter operating cycle is considered to be good for a business.
The chronology of given activities in the operating cycle.
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The operating cycle of a merchandiser with credit sales includes the following five activities. Starting with merchandise acquisition, identify the chronological order of these five activities. a. Prepare merchandise for sale. d. Purchase merchandise. b. Collect cash from customers on account. e. Monitor and service accounts receivable. c. Make credit sales to customers.
The operating cycle of a merchandiser with credit sales includes the following five activities. With merchandise acquisition as
the starting point, arrange the events in the correct order.
a. Prepare merchandise for sale
b. Collect cash from customers on account
c. Make credit sales to customers
d. Purchase merchandise
e. Monitor and service accounts receivable
The operating cycle of a merchandiser with credit sales includes the following five activities. With merchandise acquisition as the
starting point, arrange the events in the correct order.
a. Sell merchandise on credit to customers.
b. Monitor receivables from customers.
c. Receive payment in cash from customers on account.
d. Acquire merchandise with cash.
e. Arrange merchandise for sale.
Chapter 4 Solutions
FINANCIAL ACCT.FUND.(LOOSELEAF)
Ch. 4 - Prob. 1MCQCh. 4 - A company purchased $4,500 of merchandise on May 1...Ch. 4 - Prob. 3MCQCh. 4 - Prob. 4MCQCh. 4 - Prob. 5MCQCh. 4 - Prob. 1DQCh. 4 - Prob. 2DQCh. 4 - Prob. 3DQCh. 4 - Prob. 4DQCh. 4 - Prob. 5DQ
Ch. 4 - Prob. 6DQCh. 4 - Prob. 7DQCh. 4 - Prob. 8DQCh. 4 - Prob. 9DQCh. 4 - Prob. 10DQCh. 4 - Prob. 11DQCh. 4 - Prob. 12DQCh. 4 - Prob. 13DQCh. 4 - Prob. 14DQCh. 4 - Prob. 15DQCh. 4 - Prob. 1QSCh. 4 - Prob. 2QSCh. 4 - Prob. 3QSCh. 4 - Prob. 4QSCh. 4 - Prob. 5QSCh. 4 - Prob. 6QSCh. 4 - Prob. 7QSCh. 4 - Prob. 8QSCh. 4 - Prob. 9QSCh. 4 - Prob. 10QSCh. 4 - Prob. 11QSCh. 4 - Prob. 12QSCh. 4 - Prob. 13QSCh. 4 - Prob. 14QSCh. 4 - Prob. 15QSCh. 4 - Prob. 16QSCh. 4 - Prob. 17QSCh. 4 - Prob. 18QSCh. 4 - Prob. 19QSCh. 4 - Prob. 20QSCh. 4 - Prob. 21QSCh. 4 - Prob. 22QSCh. 4 - Prob. 23QSCh. 4 - Prob. 1ECh. 4 - Prob. 2ECh. 4 - Prob. 3ECh. 4 - Prob. 4ECh. 4 - Prob. 5ECh. 4 - Prob. 6ECh. 4 - Prob. 7ECh. 4 - Prob. 8ECh. 4 - Prob. 9ECh. 4 - Prob. 10ECh. 4 - Computing net sales for multiple-step income...Ch. 4 - Impacts of inventory error on key accounts P3 A...Ch. 4 - Prob. 13ECh. 4 - Prob. 14ECh. 4 - Prob. 15ECh. 4 - Prob. 16ECh. 4 - Prob. 17ECh. 4 - Prob. 18ECh. 4 - Prob. 19ECh. 4 - Prob. 20ECh. 4 - Prob. 21ECh. 4 - Prob. 22ECh. 4 - Prob. 23ECh. 4 - Prob. 24ECh. 4 - Prob. 25ECh. 4 - Prob. 1PSACh. 4 - Preparing journal entries for merchandising...Ch. 4 - Prob. 3PSACh. 4 - Prob. 4PSACh. 4 - Prob. 5PSACh. 4 - Prob. 1PSBCh. 4 - Prob. 2PSBCh. 4 - Prob. 3PSBCh. 4 - Prob. 4PSBCh. 4 - Prob. 5PSBCh. 4 - Santana Rey created Business Solutions on October...Ch. 4 - Prob. 1GLPCh. 4 - Prob. 2GLPCh. 4 - Prob. 3GLPCh. 4 - Prob. 1AACh. 4 - Prob. 2AACh. 4 - Prob. 3AACh. 4 - Prob. 1BTNCh. 4 - Prob. 2BTNCh. 4 - Prob. 3BTNCh. 4 - Prob. 4BTNCh. 4 - Prob. 5BTNCh. 4 - Prob. 6BTN
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Similar questions
- MULTIPLE CHOICE 1. The entries in a purchases journal are posted to which of the following subsidiary ledger? A. Accounts Receivable B. Sales C. Purchases D. Accounts payable 2. The accounts payable ledger has posting from which of the following sets of journal? A. Purchases, cash payments and general B. Purchases, cash receipts and general C. Purchases and sales D. Cash payments and salesarrow_forward12.1 Match the term in the left column with its definition in the right column. 1. CRM system a. Document used to authorize reducing the balance in a customer account 2. Open-invoice method b. Process of dividing customer account master file into subsets and preparing invoices for one subset at a time 3. Credit memo C. System that integrates EFT and EDI information 4. Credit limit d. System that contains customer-related data organized in a manner to facilitate customer service, sales, and retention 5. Cycle billing e. Electronic transfer of funds 6. FEDI f. Method of maintaining accounts receivable that generates one payment for all sales made the previous montharrow_forwardWhat is the journal entry for recording credit sales? a. Cash Dr. and Sales Cr b. Sales Dr. and Accounts Receivable Cr c. Accounts Receivable Dr. and Sales Cr d. Sales Dr. and Accounts Payable Crarrow_forward
- When goods are sold on credit the account of a customer is called : Select one: a. Purchases Return b. Account Payable c. Sales Return d. Account Receivablearrow_forward3. Give at least one example of each Merchandise transaction for a) Receipt b) Sales Invoice (Credit) c) Debit note d) Credit note e) Voucherarrow_forward16) Name the special journal which is used to record the credit sales transactions of a merchandising business? a. Purchases daybook b. General journal c. Cash payments book d. Sales daybook Clear my choicearrow_forward
- controlling account Match the terms with the definitions, chapter 10 A summary account maintained in the general ledger for a subsidiary ledger (for example, the accounts receivable ledger). Merchandise returned by a customer for a refund. A transfer of merchandise from one sales return sale business or individual to another in exchange for cash or a promise to pay cash. Discounts to encourage prompt payment by cash discounts customers who buy merchandise on account. The seller's term for cash discounts. sales discounts A document issued when credit is given for merchandise returned or for an allowance. credit memo A document that is generated to bill the customer who made the purchase. sales invoice An alphabetical or numerical listing of customer accounts and balances, usually prepared at the end of the month. schedule of accounts receiva ✓ A document created as evidence of a sale in sales ticket a retail business. A separate ledger containing an individual account receivable for…arrow_forwardA cash discount on purchases should be debited to ______________ Select one: A. a revenue account B. a creditor account C. a debtor account D. an expense accountarrow_forwardProblem 7.4A Recording sales transactions, posting to the accounts receivable ledger, and preparing a schedule of accounts receivable. The Problem is attached.arrow_forward
- The sales journal is used to record a. Credit sales. d. Cash purchases. b. Cash sales. e. Credit purchases. c. Cash receipts.arrow_forwardTerminology Match each phrase with its definition. A. Sales discount B. Credit period C. Discount period D. FOB destination E. FOB shipping point F. Gross profit G. Merchandise inventory H. Purchases discount 1. 2. 3. 4. 5. 6. 7. 8. Goods a company owns and expects to see to its customers. Time period that can pass before a customer's full payment is due. Seller's description of a cash discount granted to buyers in return for early payment. Ownership of goods is transferred when the seller delivers goods to the carrier. Purchaser's description of a cash discount received from a supplier of goods. Difference between net sales and the cost of goods sold. Time period in which a cash discount is available. Ownership of goods is transferred when delivered to the buyer's place of business. 1arrow_forward50) dentify the special journal is to be used to record the credit purchases of a merchandising business from the following: a. Purchases daybook b. Sales daybook c. General journal d. Cash payments bookarrow_forward
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